Summer Olympics Keeping London Hotels Busy

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According to STR Global, London's hotel sector is enjoying the economic boost from the 2012 summer Olympic crowds.

From 27 July until 29 July 2012, hoteliers across London reported 84.4 percent occupancy and £224.72 average room rates.

"Hotel performance is strong, London hotels are busy. Some but not all are full; there is room in the inn but overall hotels are in a good position", commented Elizabeth Randall, managing director of STR Global.

Historically, Olympic host cities do not sell out, Randall said. Reviewing hotel performance over the past four summer games, back to 1996 in Atlanta, none of the host cities' occupancy surpassed 90 percent for the months in which the Olympics occurred, according to STR Global.

"During a normal period, hoteliers are able to anticipate demand based on known trends and can therefore plan for short-notice demand to supplement cancellations and no-shows", Randall said. "When an international event comes to town, these variables are more difficult to control or predict."

Occupancy has been trailing behind last year for most of June and July. Recent days' occupancy achieved around 85 percent.

The Docklands/Greenwich submarket achieved the highest occupancy for the Olympic period through 29 July with 94.9 percent, followed by the West End with 89.0 percent.

Knightsbridge/Pimlico/Victoria achieved the highest ADR for the Olympic period through 29 July with £399.20, followed by the West End with £329.27.