New London hotel openings drive down occupancy and room rate figures
The significant increase in hotel openings in London resulted in a fall in hotel occupancy and room rates in the capital during April, according to preliminary new figures from data company STR.
Room supply was up 2.2% during the month, slightly ahead of the 1.3% increase in demand.
This resulted in a 0.9% drop in occupancy to 82.2%, alongside a fall in average daily rate and revenue per available room by 1.1% to £141.87 and 2% to £116.59. April was the 11th consecutive month with a year-on-year occupancy decline.
The comparison with a strong hotel performance in 2017 following the EU referendum also had a negative impact on April figures.
In March, accountancy firm PwC predicted that London's hotel performance figures in 2018 will be virtually flat due to the unprecedented growth in room supply. Around 9,000 hotel bedrooms are set to open this year, more than the 8,000 that launched during the bumper Olympic year of 2012.
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