"The immediate impact of the Middle East conflict has started filtering through to the hotel industry, with London experiencing a notable decline in occupancy rates."
"While demand softened in parts of the capital, hotels have been able to push through higher room rates, cushioning revenue performance despite the occupancy drop."
"The capital's hotel sector, which relies heavily on long-haul visitors and business travel, is typically more exposed to geopolitical shocks than regional markets."
In March, London hotel occupancy dropped from 76.3% to 74.8% year-on-year, reflecting the impact of the Middle East conflict on travel. Nationally, occupancy rose slightly from 73.2% to 73.6%. Despite lower demand in London, hotels increased average daily rates by 5% to £190.24. Revenue per available room improved, but profitability declined, with gross operating profits in London falling from 33.6% to 32.6%. Analysts attribute these trends to reduced international demand, rising costs, and geopolitical uncertainties affecting travel.
Read at London Business News | Londonlovesbusiness.com
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