Occupancy drops as pound strengthens, according to new data
The Brexit effect appears to be wearing off on London’s hotels as occupancy falls for the month of December.
Occupancy at the UK capital’s hotels fell by 2.7% to 77.9% last month, according to preliminary statistics released by the hotel analysts STR, whose international headquarters are in London.
The decline has been blamed on the value of the British currency the pound, which is now growing against other currencies following its sharp drop in value after the Brexit vote, which in turn drove visitor numbers from overseas.
The fall in occupancy in London occurred as supply grew by 3.1%, while demand was marginally up by 0.3%.
Accordingly, revenue per available room fell by 2.3% to £115.99 (€130.67), despite the average daily rate (ADR) growing by 0.4% to £148.85 (€167.70).
Although supply growth has affected London’s occupancy comparisons, December is the UK capital’s 14th consecutive month of ADR growth, the analysts say.
STR will release its full December and full-year 2017 results later this month, while the January edition of STR’s market forecast will be available by the end of the month.