London’s average hotel rate almost reached pre-pandemic levels in February, although occupancy levels remain massively down in the UK capital.
Average daily rate (ADR) in the city was £130.70 last month, according to the latest data from hotel industry analyst STR, which was only 1.6 per cent lower than London’s ADR in February 2019.
But while prices have recovered, London’s hotels only recorded an occupancy level of 58.8 per cent in February – 25 per cent below the comparable figure in 2019. This high number of empty rooms meant that the city’s revpar (revenue per available room) was only £76.88.
Occupancy in London was still at its highest monthly level since November 2021 with the market taking a hit in December and January as the spread of the omicron variant dampened demand.
STR’s figures also again illustrated how the leisure market is leading the recovery in travel, with London’s hotels performing better at weekends during February – peaking on Saturday, 26 February, when occupancy reached a high of 80.8 per cent and ADR increased to £162.33.