London’s hotel industry built on its momentum from the final months of 2016, as average daily rate and occupancy grew in January.
Preliminary data from STR’s monthly report found occupancy was up 5.8% to 70.5%, the highest for a January since 2008, while average daily rate (ADR) was up 5.7% to £127.84 – the highest for a January since 1994.
Meanwhile, revenue per available room (RevPAR) jumped 11.8% to £90.08. At the submarket level, London’s West End posted particularly high performance levels with RevPAR up 20.1% on the same month last year.
Hotel demand in the capital outstripped the supply of new properties, with demand up 8.8% compared with the 2.8% increase in supply.
In addition to the demand boost generated by a lower British pound, STR analysts noted that the market’s performance increases are in comparison with a slightly weak January 2016 when the market was still struggling from the aftershocks of the terrorist attacks in Paris.