London Hotels Again Report Lower Occupancy but Higher Rates for January

Canary Wharf, London, United Kingdom - Photo by Claus Grünstäudl on Unsplash
London Hotels Again Report Lower Occupancy but Higher Rates for January

London's hotel occupancy dipped 0.9% to 71.3% in January, according to preliminary monthly data. ADR rose 1.5% to £133.31 ($172.76), which resulted in a 0.6% RevPAR increase to £95.10 ($123.24).

STR’s preliminary January 2020 data for hotels in London indicates lower occupancy but higher rates.

Based on daily data from the month, London reported the following in year-over-year comparisons:

• Supply: +2.3%
• Demand: +1.4%
• Occupancy: -0.9% to 71.3%
• Average daily rate (ADR): +1.5% to GBP133.31
• Revenue per available room (RevPAR): +0.6% to GBP95.10

The absolute RevPAR level is the highest for any January in STR’s London database. STR analysts note that occupancy comparisons have been affected by steady supply growth in the market. Strong performance during the first and last week of the month helped the month maintain overall positive levels.

Like most major markets in Europe, London has not yet shown a noticeable impact on performance relative to the outbreak of novel coronavirus (COVID-19). However, an impact was visible in the final days of the month in the Heathrow Airport submarket.

STR will release full January results later this month.

STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com.