STR Global’s preliminary December 2015 data for London, England, indicates decreases in several key performance metrics.
- an increase in supply (+2.5%) and a decrease in demand (-1.8%);
- a 4.2% decrease in occupancy to 74.9%;
- a 0.8% decrease in average daily rate to GBP139.59; and
- a 5.0% decrease in revenue per available room to GBP104.59.
According to STR Global analysts, the decrease in occupancy for December was likely a result of the November terrorist attacks in Paris, France, and other recent threats throughout Europe. Although London was not the only major market in Europe to experience drops in tourism and travel as a result of the attacks, the ongoing safety concerns in Europe have caused corporate travel to decline. Leisure travel, however, remained solid as London hotels performed better during weekends than in December 2014.
Overall, U.K. markets are performing well. Helped by the holiday season, hotels in Birmingham and Scotland (with the exception of Aberdeen) experienced generally positive results in December. Despite recent slowdowns, the fundamentals of the U.K. economy remain strong.