London, UK Hotel Market Forecasted to Have Growth in 2013

---

According to STR Global and Tourism Economics, London and the overall UK region's hotel market is expected to enjoy both positive supply and demand growth in 2013.

Supply in London is projected to increase by 3.5 percent, while demand will grow by 2.9 percent. The excess supply is forecasted to lead to an occupancy decrease of -0.5 percent in 2013. Revenue per available room (RevPAR) is expected to decline by -1.6 percent, primarily driven by a decrease in average daily rate (ADR) of -1.1 percent to GBP139.13.
 
"RevPAR is predicted to increase in June and July, driven by a surge in occupancy from the return of the regular summer guests", said Elizabeth Randall Winkle, managing director of STR Global. "However, this will be offset by a drastic decline in ADR the following month, resulting from the 2012 Olympic Games being hosted in London during August of last year. Unfortunately, the continuing economic uncertainty across Europe makes forecasting a challenging task and subject to change." 

In London, across the hotel class segments, Upper Midscale hotels are the only segment to see an increase in occupancy and RevPAR. The 0.4-percent increase in RevPAR is because the Upper Midscale segment is the only segment where demand is forecasted to outpace supply. It is also the only segment in which occupancy is expected to exceed 80 percent.

Range of monthly RevPAR forecasts throughout 2013