RevPAR in London Expected to Increase 5% During 2014

STR Global’s preliminary May 2014 data for hotels in London indicates declines in the three key performance metrics.

Based on daily data from May, hotels in London reported:

- increases in supply (+1.7%) while demand stayed flat (0.0%);
- a 1.7% decline in occupancy to 84.5%;
- a 0.3% decline in ADR to GBP142.85; and
- a 2.0% decrease in RevPAR to GBP120.76.

RevPAR in London is expected to increase 5.0% during 2014.

“May was the first month in 2014 to report negative hotel performance for London, primarily impacted by the 2013 UEFA Champions League Final, which pushed hotel performance to new levels for the month last year,” said Elizabeth Winkle, managing director of STR Global. “The rest of the year, however, looks positive all through, as the U.K. economy and the eurozone are expected to grow further.”