With demand outpacing supply, London hotels see strong November numbers

The Reuben Brothers acquired a development site in the Soho neighborhood of London from the Shiva Hotels to develop a new hotel. 
St Giles House, Soho, London, UK. Image: Westminster Property Association

November was a good month for London's hotel sector, with some strong year-over-year performance levels, according to the latest stats from STR. 

Based on daily data from the month, hotels in London reported supply growth of 2 percent to support demand growth of 4.6 percent. Occupancy, meanwhile, increased 2.5 percent to 85.9 percent, and average daily rate grew 3 percent to £156.94. RevPAR increased 5.6 percent to £134.85. The absolute occupancy level ranked among the highest for any November in the UK capital. 

STR analysts noted performance for the month was helped by World Travel Market London, held from November 5 to 7, and the Nitto ATP Finals, held from November 11 to 17. However, both of these events are held each November, meaning that the year-over-year improvements cannot be exclusively credited to the programs.

Virtual Event

Hotel Optimization Part 3 | January 27, 2021

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event on January 27 from 10am – 1:05pm ET for expert panels focused on getting you back to profitability.


According to STR, the steady growth in supply, demand, occupancy and revenue is hardly new, and developers have been hurrying to add rooms to the city's stock. As noted last month, London is set to add more than 11,000 new hotel rooms by 2020, according to The London Hotel Monitor Report 2018, published by JLL and London & Partners. Approximately one-third of the expected pipeline is in the upscale segment, with economy hotels making up 26 percent of total future supply, followed by upper-upscale hotels with 22 percent.