How London’s booming experience economy is driving new inward investment

The experience economy - retail, hospitality, culture, events, and tourism - has long been an opportunity for global cities, with experience spending overtaking possessions back in 2005[iii] and remaining a priority for visitors to London. With an estimated almost £10bn being injected into London’s experiences over the next ten years, the UK capital is taking full advantage of this growing sector, which is valued at $5.2tn globally[iv] and now adds over £130bn to the wider UK economy.[v]

A leader in ‘world-first’ experiences like virtual avatar concert ABBA Voyage, London is experiencing a new surge of inward investment into its experiences in 2025.

Adding to east London’s offering, Excel London’s 25,000sqm expansion project – part of its £350mn investment programme – opens later this year, together with the finishing touches to Immerse LDN, now the UK’s largest immersive entertainment district. Already home to The Friends Experience and the record-breaking Formula 1 Exhibition, visitors to the new destination can also expect an immersive Elvis experience and Tutankhamun exhibition in the Spring.

East London will also welcome a brand new V&A museum and storehouse, plus BBC Music Studios, and Sadler’s Wells East (which officially opened in February 2025) as part of another new cultural quarter being supported by the Mayor of London, East Bank in Queen Elizabeth Olympic Park.

In the west, events venue Olympia is being transformed into a £1.3bn cultural destination, complete with new hotels, restaurants, and the largest purpose-built theatre to open in London in nearly 50 years.

In central London, the iconic Battersea Power Station is set to expand further as new shops, restaurants, bars, and leisure experiences join the 150 British and international brands already open across the riverside neighbourhood. Spanning 42-acres and with approximately half of the neighbourhood still to build, major new attractions include NEON, a newly re-imagined event space from the global leader in immersive experiences and exhibitions, set to open in spring 2025.

A vital part of the visitor experience, London’s hotel sector is also undergoing an impressive uplift with 50 new openings (and up to 6,000 new rooms) expected in 2025 alone – a significant increase on the 24 that opened last year. Among the expected openings is luxury property Waldorf Astoria Admiralty Arch, set to offer visitors unparalleled views down The Mall towards Buckingham Palace.

London’s new hotels are being designed as experiences in themselves: the notable 2024 opening of Raffles London at The OWO, once frequented by leaders like Winston Churchill, features a ‘spy bar’ where MI5 agents used to receive secret missions. In Hoxton and Shoreditch, the newest art’otel also offers visitors much more than just a place to rest: with two Banksy artworks onsite and its own dedicated art gallery.

More than 300 hotel projects are currently in the pipeline in the UK capital, meeting increasing demand from business and leisure visitors.

London has been chosen to host the world's first-ever city-wide celebration of the booming experience economy, London Experience Week, held at Phantom Peak and city-wide from April 28 to May 2, 2025.

Laura Citron OBE, CEO of London & Partners, said: “The experience economy sometimes flies beneath the radar because it's not defined as a 'sector' in standard statistics. But it's one of London's growth sectors of the future, at the heart of our new 10-year Growth Plan. Brilliant experiences attract visitors and global talent, which in turn drives investment and growth.

“Experience isn't just about blockbuster attractions in the city centre either, it's also London's diverse, vibrant neighbourhoods to discover and live in. Looking at 2025 and beyond, we’re hugely excited to be working with stakeholders on transforming London’s booming experience economy even further: from new and exciting hotel openings, to unique immersive events and experiences.”

Justine Simons OBE, Deputy Mayor for Culture and the Creative Industries, said: "Culture is IN London’s DNA and our thriving experience economy is drawing visitors from all over the globe. We’ve always been at the forefront of immersive culture  - you could say we invented it! From pioneers Punchdrunk to ABBA Voyage, from Outernet to new creative district East Bank. As audiences demand more and more from their entertainment, London is stepping up and we’re delighted to be hosting the world's first-ever city-wide celebration of the experience economy as we build a better London for everyone.”

Jeremy Rees, CEO at Excel London, said: “London has, and always will be, a world-class destination and Excel is very proud to play a pivotal role in the City’s burgeoning experience economy. Over the past few years, our commitment to the London events industry has been unwavering. We have invested hundreds of millions of pounds to expand our International Convention & Exhibition Centre by 25% to 125,000m2, as well as opened Immerse LDN which is London’s newest immersive entertainment district and set to attract an additional 2m visitors annually to the Royal Docks.”

Lloyd Lee, Managing Director at Yoo Capital, part of the ownership group behind Olympia, said: “Yoo Capital is investing over £3.5bn into London’s experience economy. Later this year, Olympia will start opening its doors following a £1.3bn regeneration into London's newest destination for music, theatre, restaurants and of course exhibitions and events, which have been taking place here since 1886. With this new destination, we’ll honour Olympia’s long history as a showcase while bringing together the very best experiences that will not only attract Londoners, but also leisure and business visitors from all over the world. As well as this, we are also creating Europe's first permanent home for Cirque du Soleil in Soho, and revitalising one of London's most beloved retail market destinations, the 109-year-old Shepherd’s Bush Market. Finally, we are pleased to be moving forward with Camden Film Quarter, a new film and television campus in the heart of central London that will celebrate London’s status as a production powerhouse, and will offer experiences for locals, Londoners and tourists alike.

London is a city with thousands of years of history. Our goal is to ensure that it continues to offer inspiring places and spaces to delight and inspire Londoners and visitors, working with our creative partners from the UK and around the world to create the very best experiences.”

Sam Cotton, Head of Asset Management at Battersea Power Station Development Company, said: “Battersea Power Station has long been a significant part of London’s great cultural landscape, and has taken on a new lease of life since opening to the public in 2022 as a major experiential destination in the capital which has welcomed more than 26 million visitors. With so much already to enjoy at Battersea Power Station, from shops to cinemas, restaurants, theatres, events, and even the chimney lift experience at Lift 109, we have quickly established ourselves as a major player in London’s experience economy. As we look ahead to the next 10 years, we will be bringing forward the development of the remaining 20-acres of land around the Grade II* listed landmark, including significant new retail, leisure, residential and commercial space, and the opening of NEON, a new immersive exhibition space, this spring.”

James Wallman, CEO of the World Experience Organization, said: "The experience economy isn’t just about growth—it’s about sparking creativity, building skills, and unlocking future careers in design, immersive tech, and entertainment.

London Experience Week will showcase how the capital is leading this global shift, transforming from a city you visit into a city you truly experience. Investing in culture and experiences fuels innovation, creates new opportunities for young people, and cements London’s place as the world’s hub for experience-led business.

This landmark event will bring together pioneers from across the industry to explore how experiences drive economic success, human connection, and the future of cities."

Gavin Taylor, Chief Executive Officer at Clermont Hotel Group, said: “The importance of London as a global destination cannot be underestimated, underlined recently by its No.1 awarded spot in the TripAdvisor 2025 Traveller’s Choice Awards. As the largest owner and operator of hotels in the capital, Clermont Hotel Group is uniquely positioned to support London’s thriving experience economy. 

Our commitment to London remains steadfast, with significant investments planned to enhance our hotels in the coming years including bedroom refurbishments, meetings & events spaces and creating welcoming and impressive public areas. These investments are critical to ensure that we continue providing world-class hospitality that embraces all the capital has to offer and continues to attract new and returning visitors to London for decades to come.”

Adam Challis, Head of UK Research & Strategy at JLL, said: “London’s experience economy directly supports wider business activity. The global battle for talent means that London must innovate to compete. Our constant reinvention and renewal of great spaces and places help to protect our reputation as a top tier global city.”

Find out more about the experience economy in London by visiting: https://bit.ly/4iByViR.