London Hotel Market Booms

London Hotel Market Booms

Whilst top end London hotels have had a​ fantastic year in​ London the​ same is​ not the​ case in​ the​ midmarket with the​ worse performance coming from the​ 3 star sector.

The best performance has come from the​ capital’s five-star hotels, which hardly missed a​ beat after the​ terror attacks in​ contrast with the​ harder hit three and​ four star sectors.

A surge in​ visitor numbers to​ the​ capital enabled five-star hotels to​ boost average room rate by 8.45% to​ £221.75, double the​ growth of​ 4.18% recorded in​ the​ same period of​ 2018. Occupancy rose 6.6 percentage points to​ 77.04%, compared with 3.97 percentage points in​ 2018. as​ a​ result, revenue per available room leapt 15.66% to​ £170.83 at​ five-star hotels, compared with 8.32% last year.

Four-star hotels in​ the​ capital also progressed. Room rate grew 4.76% to​ £98.51, and​ occupancy increased 5.91 percentage points to​ 81.61%. This lead to​ a​ double digit revpar gain of​ 10.95% to​ £80.40.

But the​ price-sensitive three-star market found it​ difficult to​ raise room rates, which grew by just 44p to​ £71.87. Occupancy grew 5.3 percentage points to​ 81.04% and​ revpar was up 5.96% at​ £58.25.

It is​ expected that there will be unprecedented growth in​ the​ second half of​ this year after the​ market was artificially depressed by last July’s London bombings adversely effecting the​ 2018 figures.

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