STR: Record-breaking Q1 for London hotels
The market's absolute RevPAR level of GBP101.50 was an 11.3% increase compared with Q1 2016. Occupancy reached 76.1% (+4.8%), which was the highest Q1 absolute value in the metric since 2010. Average daily rate (ADR) reached a record level at GBP133.38 (+6.2%)
STR analysts attribute the strong performance to a 7.7% spike in demand, likely driven by the devaluation of the British pound. Additionally, the Easter calendar shift from March 2016 to April 2017 moved more demand into Q1. Overall, demand was up 8.8% in March, and RevPAR rose 14.2%.
Performance increases were seen across all London submarkets, with the highest levels in the London West End, Earls Court/Kensington/Chelsea and South Central London. At the class level, performance growth was highest for the Upper Upscale (RevPAR: +14.0%) segment.
Previewing his presentation for Hotel Tech Lab in London on 16 May, James Parsons, head of business development for STR, noted the following on London's Q1 performance: "After the struggles of early 2016, we've seen consistent performance growth in London. What remains to be seen is how the market will react to an influx of new supply set to come online in the near future. London is clearly the development hotspot of Europe, with more than 13,000 rooms in the pipeline."
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 16 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.