London hotels achieved record February occupancy and average daily rate (ADR) for more than a decade last month, according to preliminary figures published by STR Global.
Occupancy increased by 0.6% to 77.3% and 0.7% to £128.4 respectively, for occupancy and ADR year-on-year, while revenue per available room (revpar) rose 1.3% to £99.34. The increase in room supply of 3.5% was outstripped by the 4.1% increase in demand.
Overall, STR Global predicts that revpar will rise by 3.2% during 2015.
Elizabeth Winkle, managing director of STR Global, said: "Hotel performance is expected to accelerate for the remainder of the year, mainly driven by increases in rate. Performance in 2015 is expected to remain strong in the capital and throughout the UK with economic trends and events like the Rugby World Cup toward the end of the year."
STR Global will release its full February 2015 results in two weeks.