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London hoteliers recorded a negative month in May as hotel supply continued to outstrip demand, driving down occupancy.
Preliminary data from STR found that a 2.5% increase in supply mixed with a 0.4% decrease in demand resulted in a 2.8% decrease in occupancy to 81.7%, when compared with the same month last year.
Meanwhile, revenue per available room (RevPAR) fell 2.4% to £117.2, while average daily rate (ADR) saw a modest increase of 0.4% to £143.92.
STR said the decrease in occupancy came as a result of supply growth and demand performance imbalance.
Although performance was weak for the month overall, occupancy remained above 86% from Tuesday, 24 May to Saturday, 28 May when London hosted the Chelsea Flower Show. ADR also peaked for the month at £165.49 on that opening Tuesday.
