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New London hotel openings continue to drive down results

14 June 2018 by
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%.

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.

New London hotel openings drive down occupancy and room rate figures >>

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Bumper year for hotel development in London will dampen performance

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