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London hotels performing well during Olympics

By James Russell: London hotels performing well during Olympics

August 9, 2012

The performance of London hotels during the 2012 Olympic Games so far is reported by STR Global to show positive increases on both occupancy and room rate year on year.

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From the start of the Games on 27 July up to 5 August 2012, hoteliers across London reported 87.7 percent occupancy and £216.42 average room rate (ADR). This represents an increase of 3.2 percent and 87.1 percent, respectively compared to the same days the year prior*.

Elizabeth Randall Winkle, managing director of STR Global commented:

“Hotels across London continue to report increasing occupancy levels and average room rates during the Olympic period when compared to last year. We are also seeing improvement from weaker occupancy performances in June and early July, so it is good to see that performance has been picking up during the Olympics. However, Heathrow and Gatwick, in the west and south of London and therefore less convenient for Olympic venues, have reported occupancy declines for the Olympic period”.

The Olympic football tournament has also impacted occupancy levels where it has been taking place across six venues, five being outside London: Cardiff, Coventry, Glasgow, Manchester and Newcastle all hosted matches. Cardiff and Coventry saw the most matches so far with 10 and 11 games, respectively. Both markets have a smaller hotel offering than the other host cities and both hosted Team Great Britain matches. The most matches with the men and women home teams took place in the Welsh capital: Cardiff saw four matches, each match boosting occupancy levels to 90 percent and above for the night of the game.

Olympic period 27 July to 5 August for London and its airports

Occupancy % ADR £ RevPAR £ RevPAR % change
London 87.7 216.42 189.89 +93.1
Heathrow 79.6 85.05 67.70 +20.3
Gatwick 75.9 66.04 50.13 +15.1

25 July to 5 August for football venues outside London

Occupancy % ADR £ RevPAR £ RevPAR % change
Cardiff 77.6 64.94 50.41 +40.3
Coventry 69.7 53.60 37.36 +43.7
Glasgow 80.2 58.17 46.66 -3.7
Manchester 70.8 61.71 43.67 +5.0
Newcastle 79.2 61.15 48.45 +7.6

*Note: the daily data for this article was extracted on 7 August at 11.30 am.

About STR Global

STR Global provides clients-including hotel operators, developers, financiers, analysts and suppliers to the hotel industry-access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia/Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, segmentation data, forecasts, annual profitability, pipeline and census information.  Hotel operators can join the surveys on a complimentary basis and benefit from free industry data.  For more information, please visit STR Global

STR Global tracks daily performance from more than 2,400 hotels across the United Kingdom. The occupancy reported to STR Global is based on physically occupied rooms, which means any paid and unoccupied rooms are excluded.

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