Based on daily data from March, London reported the following in year-over-year comparisons:
- an increase in supply (+2.5%) and a decrease in demand (-0.6%);
- a 3.1% decrease in occupancy to 76.1%;
- a 1.8% decrease in average daily rate (ADR) to GBP131.04; and
- a 4.8% decrease in revenue per available room (RevPAR) to GBP99.78.
According to STR analysts, London’s weak performance in March can be attributed to supply growth outpacing nearly flat demand. Another factor in the occupancy decrease is the ongoing threat of terrorism throughout Europe, particularly after the 22 March attack in Brussels, Belgium. Immediately following the attack, Eurostar suspended services between London and Brussels, and flights to and from Brussels and the U.K. also were canceled.
Performance declines were however softened as London hosted an RBS 6 Nations rugby match at Twickenham Stadium (12 March) and a series of Adele concerts at the O2 Arena later in the month.
STR will release March 2016 results during the week of 25 April.