Based on daily data from June, London reported:
- increases in supply (+2.6 percent) and demand (+3.3 percent);
- a 0.6-percent increase in occupancy to 88.1 percent;
- a 1.9-percent decrease in average daily rate to GBP158.71; and
- a 1.3-percent decrease in revenue per available room to GBP139.77.
According to STR Global analysts, London saw an increase in demand despite an earlier Ramadan and later Wimbledon.
London routinely experiences an influx of Middle Eastern travellers during summer months, but those travellers leave during Ramadan. Wimbledon began one week later than usual; thus, demand from the event shifted into July.
Occupancy in the market increased as demand growth outpaced supply, but the loss of those source markets for a temporary period might have contributed to the market’s drop in ADR.
STR Global will release June 2015 results later this month.