UK Hotel Industry Reports Positive Results for June 2013

According to data from STR Global, the U.K. hotel industry reported positive results in the three key performance metrics during June 2013.

In year-on-year comparisons, nationwide occupancy during the month grew 4.6% to 81.4%, ADR increased 5.2% to £89.07 and RevPAR climbed 10.1% to £72.49.

Hotels in Regional U.K., which consists of the areas outside of London, experienced a 3.1% rise in occupancy to 78.9%, a 3.0% increase in ADR to £63.33 and growth of 6.2% in RevPAR to £49.96.

During June, hotels in London saw an increase of 8.3% in occupancy to 89.4%, a 2.7% increase in ADR to £158.59 and an 11.2% increase in RevPAR to £141.81.

With the exception of Brighton, Gatwick Airport and York, most other major markets within the U.K. reported positive RevPAR growth for June 2013.

During the first half of 2013, total U.K. saw a 3.2% increase in occupancy to 72.1%, while ADR remained flat at £78.43.

Worries about increased supply as a result of the 2012 Olympic Games proved premature. Year-to-date through June, London experienced a 4.8% increase in supply, but it was offset by a 6.2% increase in demand.

Demand in the Regional U.K. was up 5.9%, while supply increased 2.1%. ADR in the region was flat and RevPAR grew 3.3% to £56.56.

“London is an attractive destination for both leisure and business travellers alike, and we’ve seen normal trading conditions return to the capital,” said Elizabeth Winkle, managing director of STR Global. “It is promising to report positive results that show how strong the hotel industry has performed thus far in the post-Olympics year. Whilst there remains room to grow in the Regions, the U.K.’s hotel performance outside of London is showing signs of encouragement.”