London Hotels, further evidence of a slowdown:

May 12 2016


  • Whitbread, STR etc. say the London market has deteriorated
  • This is a supply, rather than a demand issue – see earlier Langton emails
  • Other leisure operators are interested in the volume of hotel visitors
  • Bed/night prices could soon be on the slide

More evidence:

  • Latest HVS/AlixPartners Hotel Bulletin reports ‘the UK’s hotel market saw its first decline in average RevPAR…in 4yrs in Q1 2016’
  • In the provinces, lower oil prices hit Aberdeen, but elsewhere hotels were stable
  • HVS/AP says London REVPAR fell by 2% in 2016
  • It points out that this was ‘their 5th consecutive quarter of flat or declining figures’
  • Re London volumes, the Bulletin says ‘London remains a popular destination for Russian and Chinese visitors and investment continues to pour into the city’
  • Buoys visitor numbers and good for other leisure operators. For hotel margins, not so much


  • Profit for London hoteliers could come unstuck.
  • Oversupply is the issue; ‘twas forever thus
  • The market here has no braking mechanism – it either stalls or crashes
  • For other leisure operators, customer volumes should hold up
  • Every cloud, and all that. If visitors pay less for their beds, they have more to spend elsewhere
  • Operators such as MERL should be finding the current market relatively buoyant