London hotels experienced a drop in average daily rate (ADR) in March for the first time in 16 months, according to provisional performance figures for the month from data company STR.
The 1.2% decrease in ADR to £138.55 – the first time there has been a fall in the figure since October 2016 – was said by STR analysts to be due to the unseasonably cold weather and snow caused by the ‘Beast from the East’.
Occupancy also dropped by 0.9% to 79.8%, which together with the fall in ADR, resulted in a 2.2% decline in revenue per available room to £110.52.
Meanwhile, supply and demand for hotel rooms both increased by 1.9% and 0.9% respectively.
STR will release its full March results for London hotels later this month.