STR’s preliminary October 2016 data for London, England, indicates performance declines.
Based on daily data from October, London reported the following in year-over-year comparisons:
- an increase in supply (+2.9%) and a decrease in demand (-1.2%);
- a 4.0% decrease in occupancy to 85.0%;
- a 7.7% decrease in average daily rate (ADR) to GBP149.72; and
- an 11.4% decrease in revenue per available room (RevPAR) to GBP127.23.
STR analysts note that steady supply growth continued in the market, while demand dropped across both weekday and weekend business. Thus, the market failed to recapture the high performance levels seen around this time last year with the Rugby World Cup.
At the same time, the absolute occupancy level would be the lowest for an October in London since 2008. The year-over-year percentage changes also would mark London’s largest October declines for occupancy and ADR since 2001.
STR will release actual October 2016 results later this month. The August edition of STR’s Market Forecast is now available.