In their recent report AMEX business travel has confirmed that London has retained its status as a global business hub and centre for tourism, sport and cultural events, in spite of uncertainty related to Brexit,
Sustained business demand has allowed London to maintain high occupancy rates. However, ADR has risen slowly on account of the steady increase in supply: around 20,000 new rooms joined the city’s inventory in the last five years.
London will see a further 10,000 new rooms open in 2019 and 2020. London’s confirmed accommodation pipeline to 2020 covers diverse range of segments, products and brands, including serviced apartments, apart-hotels, hotels and hostels..
According to AM:PM triple digit supply increases are due in Glasgow, York and Manchester. Some of the largest new hotels are set to open at Heathrow Airport, and London is due to see significant new supply, with STR reporting an increase of 56% since June 2018. with over 6,300 new units.
2019 is looking to be a positive year for Occupancy and ADR growth, London leads the country in the serviced apartment category for both occupancy and ADR , with ADR for one bedroom apartments being similar to hotels, but in apartments the length of stay is 6.1 days against a 1.5 day hotel average.
Microstays – where travellers hire a hotel room from a period as small as three hours – have become increasingly popular over the last two years. These short hires offer busy travellers a chance to freshen up or recharge between meetings and brands such as Bloc Hotels at Yotel appear to be capturing this market.
Sources: AMEX Business Travel Hotel Monitor 2020. STR and AM:PM data made available during SAS EU 2019 conference.