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STR Global: UK hotels report strong June results

July 27, 2013 Statistics & Trends No Comments Email Email

The U.K. hotel industry reported positive results in the three key performance metrics during June 2013, according to data from STR Global.

In year-over-year comparisons, nationwide occupancy during the month grew 4.6 percent to 81.4 percent, average daily rate increased 5.2 percent to GBP89.07 and revenue per available room climbed 10.1 percent to GBP72.49.

Hotels in Regional U.K., which consists of the areas outside of London, experienced a 3.1-percent rise in occupancy to 78.9 percent, a 3.0-percent increase in ADR to GBP63.33 and growth of 6.2 percent in RevPAR to GBP49.96.

London hotels during June saw an increase of 8.3 percent in occupancy to 89.4 percent, a 2.7-percent increase in ADR to GBP158.59 and an 11.2-percent increase in RevPAR to GBP141.81.

With the exception of Brighton, Gatwick Airport and York, most other major markets within the U.K. reported positive RevPAR growth for June 2013.

During the first half of 2013, total U.K. saw a 3.2-percent increase in occupancy to 72.1 percent, while ADR remained flat at GBP78.43.

Worries about increased supply as a result of the 2012 Olympic Games proved premature. Year-to-date through June, London experienced a 4.8-percent increase in supply, but it was offset by a 6.2-percent increase in demand.

Demand in the Regional U.K. was up 5.9 percent, while supply increased 2.1 percent. ADR in the region was flat and RevPAR grew 3.3 percent to GBP56.56.

“London is an attractive destination for both leisure and business travellers alike, and we’ve seen normal trading conditions return to the capital”, said Elizabeth Winkle, managing director of STR Global. “It is promising to report positive results that show how strong the hotel industry has performed thus far in the post-Olympics year. Whilst there remains room to grow in the Regions, the U.K.’s hotel performance outside of London is showing signs of encouragement”.

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