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Hotels in London Report Record Revenues in December 2016

The end of the year was the time of prosperity for hotels in the capital of the UK. According to the data published by STR Global, London hotels managed to reach a significant growth of both demand and occupancy.

Even though the supply keeps growing and added 2.7% in December 2016 (year-over-year comparison), the demand greatly outpaced it and added tremendous 10%. Naturally, this helped occupancy grow as well, and so it added 7.1% to 80.1% in total. Hotels in London caught the moment and enjoyed the increased average daily rate (ADR) of 7.0% (GBP149.02 in total). Naturally, the growth of all main metrics helped to boost revenues, and RevPAR (revenue per available room) increased by 14.5% (GBP119.41 in total).

Last year was quite challenging to London hotels, so the end of the year was not expected to bring in any surprises. The performance of December 2015 was quite weak, and negative consequences of terror attacks in Paris were expected to keep slowing down the hospitality industry. However, December 2016 results marked the highest occupancy of London hotels for absolutely every December available in records. The increase of RevPAR was also very significant, and the growth of 14.5% is the highest year-over-year growth for the last 52 months. This is the highest growth since the 2012 Olympics that took place in London.

16.01.2017

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