April was London’s worst hotel performance month on record, according to preliminary data from STR.
This reflected the continued impact of the Covid-19 pandemic, as occupancy plummeted by 73% to 21.9% when compared with the same month last year.
Additionally, average daily rate (ADR) decreased by 38.9% to £87.18, and revenue per available room (RevPAR) was also down 83.5% to £19.11
STR said: “The absolute occupancy and RevPAR levels are the lowest for any month in STR’s London database, while absolute ADR fell below £90 for the first time since August 2005. The occupancy level was down from 32.7% in March.”
It comes after the ONS revealed that the accommodation and food services industry has been significantly affected by the Covid-19 pandemic, falling by a “record” 31.1% between February and March 2020.
It added that given the scale of the fall it is evident that demand fell as part of consumer reaction to social distancing measures. From 23 March 2020, many of the businesses in these industries were required to cease their normal operating practices, which had a significant impact on hotels, camping sites, restaurants, pubs and bars among others.
The ONS also received some responder-led evidence of changes in business activity, including restaurants and pubs moving to home delivery. However, it noted the positive effect of these changes in operating practice has “not had a large enough effect” to offset the negative effects of widespread closures.