Weaker British pound keeps helping the hospitality industry of the UK, allowing hotels in London enjoy a growth of RevPAR of 11.8% in January. Such a year-on-year growth was also achieved because of weaker January 2016 results, when whole European hotel industry was yet recovering from aftershocks caused by the terrorist attacks in Paris.
Even though the supply keeps growing in the city and added 2.8% last month, the growth of demand was outpacing it and estimated 8.8%. The occupancy added 5.8%, reaching the level of 70.5%. The average daily rate (ADR) was also growing and estimated GBP127.8, showing, therefore, the increase of 5.7%. Consequently, RevPAR was also positive and added 11.8% to GBP90.08.
Analyzing this data, we can say that London hotels definitely maintained strong results of the end of the previous year in January 2017. The occupancy level of 70.5% is the highest absolute occupancy of hotels in the capital of the UK in January since 2008. ADR also set a record last month as the average daily rate of GBP127.8 was the highest result for a January since 1994. If analyzing by areas of the capital, the highest RevPAR was reached by hotels in West End that managed to increase their revenue by 20.1% year-on-year. According to experts, weaker pound might keep boosting demand and attract more travellers to the country, helping the hospitality industry to recover.