Infographic: London hospitality trends

The rise in property prices in the capital's prime central locations is prompting a change in hotel developers' attitudes, according to Wetherell's 'Sleeping in London' report.

While luxury hotels have become the only sustainable option in expensive areas of London, branded residences mixing hotel, private apartments for sale and serviced apartments are a promising development.

"The most “game changing” recent development in the London luxury property and hospitality market is the emergence of branded residences, which we believe is set to grow and become a major niche sector of the London luxury market. Branded residences are the ultimate synergy vehicle and are highly lucrative since they can tap into a range of revenue streams.

"This market is massively undersupplied in the capital at present with less than a dozen branded residences across inner London. The success of the existing projects also indicates that the format could also be strategically expanded into the 3 and 4 star hotel sectors, linked to lower priced serviced or private sale residences," said Wetherell chief executive Peter Wetherell.

Other trends include the expanding price gap between luxury hotel suites and other types of accommodation, despite growing similarities in terms of design and services.