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London room rates pass £165 in post-Brexit surge

Increased demand sees year-on-year average rates increase by 7 per cent in the capital
01/09/2016

Pictured: the average cost of a hotel room in London this year to date is £149

The average cost of a hotel room in the capital hit £167 in July, according to the latest data from the HotStats UK Chain Hotel Market Review.

A rise in demand attributed to favourable exchange rates in the immediate aftermath of the vote to leave the European Union led a marginal increase in occupancy. This bucked a downward trend for 2016 as rates increased by 7 per cent, compared to July 2015. Average rate for the year to date is £149, up 1 per cent on last year. The HotStats data backs up findings from hotel analysts HVS which said rates were flat in the capital between April and June, while HRS figures point to a seven point fall in average rate.

Revenues from food and beverage and conference and banqueting increased by 4 and 7 per cent, respectively. The HotStats report added: “July was a perfect storm of the biennial Farnborough Air Show, which typically drives strong demand for hotel accommodation in the capital, visitor demand being displaced to London from other key European destinations due to security threats and Brexit, which caused a crash in the value of sterling, suddenly making the UK a much cheaper place to visit.” 

Elsewhere, Nottingham hosted conferences including the Health Services Research UK Symposium and the British Society of Criminology Conference, to drive up rates by 7 per cent to £65 as occupancy increased by three points.

And in the east of England, hoteliers responded to a 2 per cent increase in demand by putting rates up to £80.


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