The increase in bedroom supply across London hotels had a negative impact on occupancy and room rates in March, according to preliminary data from hotel data company STR.
The 2.5% increase in supply outpaced the 0.6% decrease in demand, resulting in a 3.1% decrease in occupancy to 76.1%.
Meanwhile, average daily rate and revenue per available room fell by 1.8% to £131.04 and 4.8% to £99.78 respectively.
STR analysts said that London's weak performance in March was also impacted by the ongoing threat of terrorism throughout Europe, particularly following the 22 March attack in Brussels, when Eurostar suspended service between the city and London and flights between the two cities were cancelled.
London, however, benefitted from the Six Nations rugby match at Twickenham stadium on 12 March and a series of Adele concerts at the O2 Arena later in the month.
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