Positive 2013 supply and demand forecast for London and regional UK - STR Global Reports
STR Global, the leading provider of market data to the hotel industry, in conjunction with Tourism Economics, is forecasting positive supply and demand growth across London and regional U.K. in 2013. Supply in London is projected to increase by 3.5 percent, while demand will grow by 2.9 percent. The excess supply is forecasted to lead to an occupancy decrease of -0.5 percent in 2013. Revenue per available room (RevPAR) is expected to decline by -1.6 percent, primarily driven by a decrease in average daily rate (ADR) of -1.1 percent to GBP139.13.
In London, across the hotel class segments, Upper Midscale hotels are the only segment to see an increase in occupancy and RevPAR. The 0.4-percent increase in RevPAR is because the Upper Midscale segment is the only segment where demand is forecasted to outpace supply. It is also the only segment in which occupancy is expected to exceed 80 percent.
In 2013, supply across regional U.K. is forecasted to grow 1.4 percent, exceeding demand growth of 0.6 percent and leading to an occupancy decrease of -0.8 percent. The decline in occupancy will be moderated by a 1.7 percent increase in ADR, resulting in a 0.9 percent increase in RevPAR to GBP41.54.
Across the U.K., monthly RevPAR percentage changes from the previous year are projected to range between -7.4 percent and 8.9 percent in Birmingham, with percentage ranges in Edinburgh (-6.2 percent to +8.2 percent), Gatwick (-2.0 percent to +13.3 percent), Glasgow (-4.5 percent to +12.1 percent), Heathrow (-7.1 percent to +12.3 percent), Leeds (-2.5 percent to +9.5 percent) and Manchester (-7.0 percent to +9.4 percent) illustrating similar patterns.
STR Global, in conjunction with Tourism Economics, produces quarterly Market Forecast reports for 45 markets across Europe, the Middle East and Asia.
Rachael Spann Urie
Director, Public Relations
Phone: +1 (615) 824-8664 ext. 3305
About STR Global
STR Global provides clients—including hotel operators, developers, financiers, analysts and suppliers to thehotel industry—access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, segmentation data, forecasts, annual profitability, pipeline and census information. Hotel operators can join the surveys on a complimentary basis and benefit from free industry data. STR Global is part of the STR family of companies and is proudly associated with STR, STR Analytics and Hotel News Now. For more information, please visit www.strglobal.com.