London hotels expected to perform better in 2017
The hotel industry in London is expected to experience continued performance declines through 2016 but more positive results in 2017, according to a quarterly forecast report from STR and Tourism Economics.
London's revenue per available room dropped 3.2% to £95.60 in April. Although average daily rate declined moderately (-0.5% to £128.34) during the period, occupancy dropped 2.7% to 74.5%.
London has seen growth in revenue per available room every year since 2010. However, it has also seen occupancy declines for each month since November 2015.
Looking at the remaining months of 2016, the report suggested ongoing security threats in Europe and the result of the EU referendum are likely to have a negative impact on hotel performance in London.
However, it expects recovery to be driven by domestic demand, an increase in the consumer price index and renewed investments in 2017.
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