Economy

Occupancy declines at London hotels in January

London hotels saw occupancy decline by 0.9% in January compared with the same period last year, according to the latest data from hospitality data benchmarking firm STR.

Despite this, the average daily rate (ADR) increased by 1.5% to £133.31 during the month, and supply and demand both grew by 2.3% and 1.4% respectively.

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Additionally, revenue per available room (RevPAR) was up by 0.6% to £95.10 during the period.

STR said: “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.”

It comes after a report by Knight Frank found that the UK’s hotel sector benefited from nearly £6bn of hotel investment in 2019, the result of “continued strong demand” from investors seeking long term, secure income streams.

The growth was driven by record levels of institutional investment and “alternative property types” favoured over other mainstream properties.

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