Mixed July for London hotels
London’s hotel sector reported a 2.7 per cent increase in supply and a 0.8 per cent rise in demand, but a 1.9 per cent decline in occupancy, dropping to 86 per cent.
Meanwhile ADR went up 0.9 per cent to £145.22, and revPAR suffered a 1 per cent decrease to £124.94.
“London reported declines in revPAR performance for the third month in a row, impacted by increased supply and the fasting month Ramadan as guests from the Middle East were absent from the capital”, said Elizabeth Winkle, managing director of STR Global.
“Although occupancy declined, the British capital achieved levels above 85 percent in this measure for the second year in a row, and the biennial Farnborough Air Show helped drive rates for the month”.
Full July results will be released by STR Global in two weeks, while the August edition of the STR Global Hotel Market Forecast will be available by the end of the month.
August forecast
London hotels were outperformed by the regions in June, with a drop in profits for the second consecutive month, despite increases in room yield and average daily rate.
At the time, Robert Barnard, partner at BDO LLP, which delivered the June performance results, said: “The return of the corporate market, and more generally, sustained economic growth should continue to positively influence both London and regional performance.”
Meanwhile another study by Travelclick revealed at the start of the month that over half of London hotel rooms (50.6 per cent) were already booked for August – two thirds on Saturday nights – prompting analysts to forecast strong August results in the capital.
