According to data compiled by STR, the hotel
industry in London, England, posted its highest RevPAR for any
first quarter on record.
For the first three months of the year, London’s
absolute RevPAR level of GBP101.50 was an 11.3% increase compared
with Q1 2016. Occupancy reached 76.1% (+4.8%), which was the
highest Q1 absolute value in the metric since 2010, while ADR
reached a record level at GBP133.38 (+6.2%).
STR analysts attribute the strong performance to
a 7.7% spike in demand, likely driven by the devaluation of the
British Pound. Additionally, the Easter calendar shift from March
2016 to April 2017 moved more demand into Q1. Overall, demand was
up 8.8% in March, and RevPAR rose 14.2%.
Performance increases were seen across all
London submarkets, with the highest levels in the London West End,
Earls Court/Kensington/Chelsea and South Central London. At the
class level, performance growth was highest for the Upper Upscale
(RevPAR: +14.0%) segment.
Previewing his presentation for Hotel Tech Lab
in London on 16 May, James Parsons, head of business development
for STR, noted the following on London’s Q1 performance: “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.”
STR analysts see performance figures for U.K.
areas excluding London as a sign that the rest of the country is also benefitting from the uptick in leisure visitors due to the
devaluation of the GBP.
RevPAR for Regional U.K. was up 3.8% to
GBP44.70 for Q1.
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