During the first three months of 2017, London hotels showed the highest revenue per available room (RevPAR) for any first quarter on record, according to data from STR.
The market had an absolute RevPAR level of £101.50, which is an 11.3% increase on Q1 of 2016.
Occupancy reached 76.1% (up 4.8%); the highest Q1 absolute value since 2010. Average daily rate (ADR) reached a record level at £133.38 (up 6.2%)
STR analysts said that the strong performance was due to a 7.7% increase in demand, possibly a result of the devaluing British pound.
Improvements in performance levels were seen all across London, with the West End, Earls Court, Kensington, Chelsea and south central London showing the highest increases.
James Parsons, head of business development for STR, said: “After the struggles of early 2016, we’ve seen consistent performance growth in London. What remains to be seen is how the market will react to an influx of new supply set to come online in the near future. London is clearly the development hotspot of Europe, with more than 13,000 rooms in the pipeline.”
