Average daily rate in UK hotels falls for first time since October 2016

UK hotels recorded the first decline in average daily rate (ADR) for 19 months in May, according to new figures released by data company STR.

The 0.8% decrease to £93.31 took place despite a 2% increase in supply outpacing a 1.4% demand growth. Meanwhile, revenue per available room (revpar) was down 0.3% to £74.47, alongside a 0.5% rise in occupancy to 79.8%.

The UK-wide figures follow on from the release earlier this month of the performance result during May of London hotels, which showed a decline across all metrics. ADR and revpar dropped by 4.1% to £146.51 and 5% to £120.59 respectively, while occupancy fell by 1% to 82.3%.

Meanwhile hotel performance across Europe during May was largely flat with a 0.8% fall in occupancy to 74.4% and ADR and revpar down 1.5% to €113.35 (£99.39) and 0.6% to €84.31 (£73.9) respectively.

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