An increase in supply compared with falling demand has resulted in a negative year-on-year performance for London hoteliers in March.
STR Global’s preliminary data for London found an increase in supply in the capital of 2.5% as demand fell by 0.6%. This resulted in a 3.1% decrease in occupancy to 76.1%.
Meanwhile, London also reported a 1.8% decrease in average daily rate (ADR) to £131.04 and a 4.8% decline in revenue per available room (RevPAR) to £99.78.
According to STR analysts, London’s weak performance in March can be attributed to supply growth outpacing nearly flat demand.
Another factor in the occupancy decrease, said STR, is the ongoing threat of terrorism throughout Europe, particularly after the attack in Brussels, Belgium, on 22 March.
Immediately following the attack, Eurostar suspended services between London and Brussels, while flights to and from Brussels and the UK were also canceled.
STR added performance declines were softened as London hosted an RBS Six Nations rugby match at Twickenham Stadium on 12 March, and a series of Adele concerts at the 02 Arena later in the month.