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New London hotel openings continue to drive down results

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New London hotel openings continue to drive down results

The ongoing number of openings in London had a negative impact on hotel performance during May, according to preliminary figures from data company STR.

The Royal Wedding on 19 May failed to produce a significant impact on performance. Revenue per available room was down 5% to £120.59 and average room rate dropped by 4.1% to £146.51. Occupancy also fell, by 1% to 82.3%.

Performance was impacted by the 2% increase in room supply, alongside a small rise (0.9%) rise in demand. As of April, London’s 12-month average supply growth was 3%.

Around 9,000 hotel bedrooms are set to open in London this year – more than the 8,000 that launched during the Olympic year of 2012.

STR analysts said that although there was a weakening of the pound in May, there was no significant increase in demand for hotel rooms.

The full performance results for May will be published later this month.

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