STR’s preliminary data for London, England, indicates record-breaking levels in average daily rate and revenue per available room.
Based on daily data from July, London reported the following in year-over-year comparisons:
Occupancy: +4.0% to 91.2%
Average daily rate (ADR): +4.7% to GBP171.25
Revenue per available room (RevPAR): +9.0% to GBP156.15
Both the ADR and RevPAR levels were the highest for any month in STR’s London database. Performance for July 2018 even topped the levels achieved in July 2012, when the market hosted the opening days of the Summer Olympics. STR analysts attribute the strong performance to an unseasonably warm summer, as well as popular events, including Wimbledon and London Pride. Hotel operators managed to capitalize on increased business by driving rate.
Following a record-breaking first half 2017, hotels in the U.K. capital have since seen a slowdown in performance, mainly due to strong ongoing supply growth. This July performance followed a 1.5% increase in RevPAR in June 2018, indicating a summer upswing.
STR will release full July results later this month. The August edition of STR’s Market Forecast will be available later this month for London and a number of other key markets around the world.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.