London’s hotels enjoyed record-breaking room rates in December as the UK capital continued its resurgence as a leading European destination.
The latest data from CoStar, owner of hotel industry analyst STR, found the average daily rate (ADR) in London reached £208.90 last month, which was 2 per cent higher than in 2022 and also a record for any December.
Revpar (revenue per available room) also reached new heights for December at £168.07, a year-on-year increase of just under 8 per cent. Meanwhile occupancy in London was up by 5.7 percentage points to 80.5 per cent, which was the highest level since December 2018.
CoStar’s data showed that Thursday, 7 December, and Wednesday, 6 December, were the busiest days for hotel occupancy in London during the month, with rates of 94.9 per cent and 94.6 per cent respectively.
Unsurprisingly, London’s room rates peaked on New Year’s Eve (31 December) when they reached an average of £287.25.
Hotel price rises in the city have been showing signs of “normalising” in recent months after increasing rapidly as travel resumed post-pandemic.