Increase in demand and occupancy for London hotels

LONDON - Based on STR Global daily data from August, preliminary data for Greater London includes:

increases in supply (2.3 percent) and demand (7.3 percent);

a 4.9-percent increase in occupancy to 86.3 percent;

a 16.7-percent decrease in average daily rate to GBP132.79; and

a 12.7-percent fall in revenue per available room to GBP114.54.

“London has seen the return of its usual guests following the Summer Olympics last year, resulting in an increase in demand and thus occupancy”, said Elizabeth Winkle, managing director of STR Global. “ADR declines in August 2013 were expected since the daily average rates were above GBP200 during the Olympic period in 2012”.

“We forecast a 1.5-percent decline of revenue per available room for year-end 2013, which is due to last year’s Olympic Summer Games high rates”, said Naureen Ahmed, manager of marketing and analysis at STR Global. “This trend will be reversed for year-end 2014 when London will have returned to its normal trading conditions; STR Global forecasts RevPAR to grow by 3.4 percent”.

STR Global will release final August 2013 results in two weeks. Revised 2013 forecasts will be available in November.