London is not only one of most popular cities in the world, but also a key European destination, and so its results are very important for understanding the processes within the industry. The July results published by London hotels, as it is mentioned by STR Global, are rather mixed and continue the trend of previous months.
Even though demand in July added 0.8%, the growth of supply significantly outpaced it and estimated 2.7%. This was the main factor for decreasing occupancy on average the occupancy fell by 1.9%. The growth of supply also caused the decline in average daily rate that lost 0.9% to the sum of GBP145.22. With all key indicators falling, revenue per available room (RevPAR) also couldn’t remain positive and the decline estimated 1% to GBP124.94.
July became the third consequent month of declines in results of London hotels. Hotels in the capital of the UK suffer not only from fast growing supply, but also from the absence of guests from the Middle East, who do not travel due to the fasting month of Ramadan. However, even though occupancy is falling, the city has managed to achieve very high level in this parameter. For the second year in a row the British capital achieves the occupancy above 85%. The biennial Farnborough Air Show was a great help for London hotels as it helped to boost results for the month.