Get the latest hospitality news and inspiration straight to your inbox. Subscribe to our newsletter.

New London hotel openings drive down occupancy and room rate figures

Written by:
Written by:
New London hotel openings drive down occupancy and room rate figures

The significant increase in hotel openings in London resulted in a fall in hotel occupancy and room rates in the capital during April, according to preliminary new figures from data company STR.

Room supply was up 2.2% during the month, slightly ahead of the 1.3% increase in demand.

This resulted in a 0.9% drop in occupancy to 82.2%, alongside a fall in average daily rate and revenue per available room by 1.1% to £141.87 and 2% to £116.59. April was the 11th consecutive month with a year-on-year occupancy decline.

The comparison with a strong hotel performance in 2017 following the EU referendum also had a negative impact on April figures.

In March, accountancy firm PwC predicted that London’s hotel performance figures in 2018 will be virtually flat due to the unprecedented growth in room supply. Around 9,000 hotel bedrooms are set to open this year, more than the 8,000 that launched during the bumper Olympic year of 2012.

Bumper year for hotel development in London will dampen performance >>

Beast from the East drives down London’s average daily rate >>

Hotels see profit per room fall 5.1% in February >>

 

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!). Subscribe today and save 51%

Start the discussion

Sign in to comment or register new account

Start the working day with

The Caterer’s free breakfast briefing email

Sign up now for:

  • The latest exclusives from across the industry
  • Innovations, new openings, business news and practical advice
  • The latest product innovations and supplier offers
Sign up for free