In 2013, the hotel market in London, United Kingdom, is expected to develop.

 

According to STR Global and Tourism Economics, the hotel market in London and the wider UK area is expected to rise in both supply and demand in 2013. apartment for sale in qatar

In London, supply is expected to rise by 3.5 percent, while demand is expected to rise by 2.9 percent. In 2013, the excess supply is expected to result in a -0.5 percent decrease in occupancy. The average daily rate (ADR) is projected to drop by 1.1 percent to GBP139.13, resulting in a -1.6 percent drop in revenue per available room (RevPAR).

"A spike in occupancy from the return of the daily summer guests is expected to raise RevPAR in June and July," said Elizabeth Randall Winkle, managing director of STR Global. "However, the following month will see a significant drop in ADR as a result of the 2012 Olympic Games being held in London in August of last year. Unfortunately, the European Union's ongoing economic instability makes forecasting difficult and unpredictable."

Only Upper Midscale hotels in London have seen a rise in occupancy and RevPAR across all hotel class segments. Since the Upper Midscale segment is the only one where demand is expected to outpace supply, RevPAR increased by 0.4 percent. It's also the only category where occupancy is projected to be higher than 80%.

In 2013, supply is expected to increase by 1.4 percent in the regional United Kingdom, outpacing demand by 0.6 percent and resulting in a -0.8 percent decrease in occupancy. A 1.7 percent increase in ADR would offset the drop in occupancy, resulting in a 0.9 percent increase in RevPAR to GBP41.54.

Monthly RevPAR percentage changes from the previous year are expected to range between -7.4 percent and 8.9 percent in Birmingham, with percentage ranges of -6.2 percent to +8.2 percent in Edinburgh, Gatwick (-2.0 percent to +13.3 percent), Glasgow (-4.5 percent to +12.1 percent), Heathrow (-7.1 percent to +12.3 percent), Leeds (-2.5 percent to +9.5 percent), and Manchester (-7.0 percent to +9.5 percent).

STR Global publishes quarterly Business Forecast reports for 45 markets across Europe, the Middle East, and Asia in collaboration with Tourism Economics.