The future of the European Union may be up in the air, but the hospitality industries in London and Berlin are doing just fine, according to preliminary data from STR.
This is London
Based on daily data from May, London saw solid growth across several metrics compared to last May. Supply grew by 3.2 percent, demand by 5 percent and occupancy by 1.7 percent to 83.1 percent. ADR, meanwhile, jumped a full 7 percent to £153.04, and RevPAR grew 8.9 percent to £127.24.
The absolute RevPAR level would be the highest for any May on record in London. The market has set RevPAR records each month in 2017.
Absolute occupancy reached 90 percent or higher nine times in May, including several days around the times of the Security and Counter Terror Expo (May 3-4), Museums Heritage Show (May 17-18) and London Wine Fair (May 22-24).
STR analysts noted that hotel performance in London has reached record levels due primarily to the pound devaluation and a subsequent boost in leisure business. The market maintained performance growth without disruption following the Westminster and Manchester terror attacks, but it is too early to gauge any potential impact as a result of the recent tragedy at London Bridge.
Welcome to Berlin
Like London, Berlin reported year-over year growth. Supply grew by 1 percent and demand by +3.1 percent, while occupancy rates increased by 2.1 percent to 81.4 percent. ADR grew by 5.8 percent to €105.41 and RevPAR increased by 8.1 percent to €85.79
The absolute occupancy level would be the second-highest for any May on record in the market. STR analysts attribute demand to the following events: Re:Publica, digital culture conference (May 8-10); Deutscher Evangelischer Kirchentag (May 24-28), faith festival; and DFB-Pokal, German football final (May 27). The market reported 11 days of occupancy above 90 percent during the month.