The UK hotel industry reported positive results for hotel demand for the year-to-date July 2013, according to data from STR Global – however, it also found that the average daily rate decreased over the same time period.
In year-over-year comparisons, STR Global found that nationwide occupancy during the month grew by 6.4% to 82.3%, while average daily rate (ADR) decreased 6.2% to £83.40 and revenue per available room remained stable at £68.61, with only a 0.1% decrease.
In July, hotels in ‘Regional UK’ – which consists of the areas outside of London – experienced a 5.6% rise in occupancy to 80.7%, a 0.3% decrease in ADR to £62.44, and a 5.3% growth in revenue per available room (RevPAR) to £50.41.
London hotels during July saw an increase of 8.9% in occupancy to 87.7%, a 15.2% decrease in ADR to £143.13, and RevPAR dropped 7.6% to £125.55.
“London’s ADR decrease in July can be attributed to the shift of Ramadan and the absence of major events such as the Farnborough Airshow,” says Elizabeth Winkle, MD of STR Global. “While the capital faced losses in July, it is good to see markets like Edinburgh coming back strongly, similar to other Scottish markets. Edinburgh posted year-over-year RevPAR growth of 26.5% in July.”
During the first seven months of 2013, STR Global reports that the UK has seen a 3.7% increase in occupancy to 73.6%, while ADR decreased 1.1% to £79.21, and RevPAR rose 2.5% to £58.28.
Year-to-date through July, London experienced a 4.5% increase in supply, but that was offset by a 7% increase in demand. Demand in the provinces is up 6.1%, and with limited supply increase of 2%, ADR remains flat.
