Tag: Hotel rates

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London hotels see room rates increase in April

STR’s preliminary April 2019 data for London hotels reported an increase in Average daily rate (ADR) of 1.4% to £143.01.

According to the report, year-over-year, supply is increased by 2.3% during the month, with demand also growing by 0.7%. However, occupancy decreased by 1.6% to 81.1% during the period, and Revenue per available room (RevPAR) also slipped 0.1% to £115.99.

A statement by the group read: “The absolute ADR level is the highest for any April in STR’s London database. STR analysts attribute the decrease in occupancy to supply growth, and to a lesser extent, the Easter calendar shift from early April last year.”

It comes as UK hoteliers saw an “encouraging start” to the year as a result of a “healthy rise” in hotel demand from international travellers.

The findings from Expedia Group, drawn from Q1 2019 data (January, February, March), show that demand for trips made by international travellers increased when compared with the same period last year, with major metropolitan cities and several regions across the country boosted by double digit year-on-year growth.

Outside of London, a number of major cities experienced notable growth, including Manchester (over +10% year on year), Edinburgh (+15% year on year), Glasgow, Leeds and Cardiff (each +10% year on year).

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European hotel rooms see ‘strong growth’ in value

European Landmarks

Hotel values across Europe registered another strong year in 2018 showing 3% growth and reaching new highs, according to the annual European Hotel Valuation Index (HVI), compiled by global hotel consultancy HVS.

Although it was a more modest growth than that of 2017 at 3.9%, 2018 saw recovery for many cities as well as a levelling off in values for some markets, which had previously been depressed compared with the European average.

The annual HVI ranks the percentage change in the values of typically four-star and five-star hotels across 33 major European cities, both in Euro and local currency terms, as well as ranking each market in terms of the average price per hotel room.

Hotels in Lisbon, Moscow, Paris, Brussels and Berlin filled the top five slots in terms of highest percentage growth in values in euro terms, with Lisbon (9%), the year’s biggest climber.

On the back of the FIFA World Cup Moscow’s hotels recorded 8% growth in this year’s index with a RevPAR increase in euros of over 180% for June and July. St Petersburg showed a 6% increase, ranking it sixth in the HVI. In local currency value growth in these markets was even more pronounced.

Paris returned to the top five in this year’s index up 7%, while Berlin completed the top five also with 7% growth.

Only six of the 33 markets analysed experienced a value drop, with those at the bottom of the index, in euro terms, including Barcelona, which was badly impacted by the civil unrest caused by the strengthening of the Catalan independence movement; Hamburg, Manchester and Warsaw, which all suffered from an influx of new supply in the market; and Geneva and Stockholm, which were impacted by currency dynamics in 2018.

In terms of the absolute value of hotel rooms, those in Paris, London, Zurich, Geneva and Rome filled the top five slots for the most expensive in Europe, with Birmingham, Sofia, Bratislava, Bucharest and Manchester at the bottom end of the ranking.

Sophie Perret, director at HVS London, said: “Demand for hotel accommodation remains vigorous across most markets in Europe, and while economic growth for this cycle might be beyond its peak hotel demand is unlikely to suddenly fall away.

“For investors the advice is to factor in a slightly longer exit window and be cautious, but there are some good deals to be had by those seeking to acquire hotels in many European cities.”