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Record Breaking Results of Hotels in London in July 2018

The preliminary data published by STR Global shows that despite all troubles and mixed forecasts about the future of hotels in the British capital, London hotels managed to achieve significantly better results in the second month of summer. The occupancy added fantastic 4%, reaching solid 91.2%. The average daily rate (ADR) went even further, featuring an increase of 4.7% to GBP171.25. Naturally, that boosted revenues per available room (RevPAR) as well, so it jumped 9% up to GBP156.15.

The levels of ADR and RevPAR are unprecedented even for London hotels that are famous for their high occupancy and high profitability. The year-on-year comparisons (July 2018 vs. July 2017) are the following. Supply added 2% in July, but demand was growing much faster, adding 6.1% during the same month. This caused occupancy to add 4% to 91.2%, ADR added 4.7% to GBP 171.25, and RevPAR grew by 9% to GBP156.15.

The month is a new milestone for the hospitality industry of the city because the levels of both ADR and RevPAR are the highest for hotels in London on record in the database of STR Global. It may be surprising, but the results of July 2018 were even higher than the achieved levels of July 2012 when the city was hosting first days of the Summer Olympic Games. What could bring such stunning results? Experts at STR Global name several reasons for such unexpected success. Warmer than usual summer and several major events, such as Wimbledon and London Pride, made London even more attractive for tourists, bringing extra guests to the city.

London hotels managed to benefit from the increased number of guests and improve their business by increasing rates. This month is also important because it breaks the downward trend of recent months. The hotel industry of the UK had a record-breaking first half of 2017. After that, there was a definite slowdown and weakened performance across the country. The ongoing growth of supply was one of the major reasons for that.

July became the second consecutive month of growth for the hotel industry of the country. In June, the results were not that impressive but still positive – RevPAR added 1.5%. This makes it looks like summer 2018 is going to be a success for hotels in the UK. It is important to mention that these are yet preliminary results for the month of July. STR will publish full results later, as well as the August forecast for London hotels.

27.08.2018

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