Travel Reservations - OrangeSmile Tours
Best destinations around the world - Travel Guide

Find the right hotel

Hotel Business News and Analytics
Important! This article is written by orangesmile.com editors and is protected by copyright law. The article can only be re-used with a direct link to www.orangesmile.com

Average Results of Hotels in London and Munich in October

News October was definitely not the best month for hotels in London as they posted primarily mixed results. The preliminary data by STR Global shows that despite the growing average daily rate, hotels in the capital of the UK experienced a decline in occupancy that leads to nearly flat revenues. Munich hotels, in their turn, posted a similar result, but the growth in ADR couldn’t offset the negative result of occupancy, and so hotels in the gateway German city experienced a decline in revenues.

The preliminary data by STR contains the following information about the performance of hotels in London in October 2017. The hotel supply added 4%, while the demand grew by only 2%. Naturally, this caused a drop in occupancy of 1.9% to 83.4% in total. The average daily rate (ADR), however, was growing to the level of GBP152.27. This helped RevPAR (revenue per available room) add modest 0.4% to GBP126.96.

While the occupancy looks high for hotels in London, it is, actually, the lowest October result since 2006. On the other hand, the ADR result was the second-highest for the month of October since 1994. The demand keeps growing despite the constantly increasing hotel supply. Meanwhile, STR experts mention that the continuous growth of supply may cause more challenges in future. London hotels managed to improve their metrics thanks to Helitech International helicopter expo & conference that took place on October 3-5. During the event period, the occupancy was ranging from 94% to 96%, and the ADR was GBP182 to 185.

The data provided by Munich hotels was even less promising. The supply added 2.9% while the demand was negative (-0.3%). Consequently, the occupancy fell down by 3.1% to 79.9% in total. ADR was growing in October and added 1.6% to EUR144, but that was not enough to make RevPAR grow. The revenue for the month was negative, -1.5% to EUR115.04.

The result of October 2017 was the first time since 2009 that hotels in Munich experienced their occupancy below 80%. There is a reason for that. While the demand is almost flat in recent years, the supply has been growing for the fifth consecutive month in 2017. If the supply grow doesn’t slow down, Munich hotels are likely to experience more challenges in future. Closer to the end of the month, hotels in the city improved their results thanks to the Eat & Style food festival that took place on October 27-29.


Previous article / Back to news index

Stay in touch with the latest news of a worldwide hotel industry. All up-to-date analytics, reports, and news about hotel business trends on OrangeSmile.com.

Our travel services
 Car Rental
Car Hire Worldwide
 News in languages
 Top 10 destinations
162 hotels
121 hotels
77 hotels
45 hotels
216 hotels
Miami Beach
138 hotels
1184 hotels
55 hotels
Sunny Beach
127 hotels
Zell am See
74 hotels