Rental occupancy rates exceed other lodgings in London

UK: Performance data up to the end of June 2021 from a study published by STR, the global data intelligence and benchmarking company, shows the short-term rental industry in London continues to grow perform better than other accommodation sectors.

The follow-up study, carried out in partnership with the UK Short Term Accommodation Association [STAA], is unique in that it measures the three major accommodation sectors by simultaneously comparing the performance of short-term rentals, hotels and furnished apartments in London.

In occupancy, short-term rentals were significantly ahead of others, averaging 62.7% for June. Hotels accounted for 40.6% and serviced apartments 39.7%, an increase of 35.7% year-on-year for short-term rentals.

For revenue per available room [RevPAR], short-term rentals were ahead again, averaging £ 79.20 in June – a 59.5% year-on-year increase – compared to hotels, which averaged £ 40.40 , and serviced apartments, which averaged £ 57.80.

Short-term rentals saw their average length of stay increase from 10.6 days in May to 11.0 days in June. In June of last year, the average length of stay in vacation rentals was only 9.4 days. There is no comparable data with hotels and furnished apartments for this metric.

Merilee Karr, President of STAA and CEO of UnderTheDoormat, said: “It’s great to see that some of the key business indicators in the short-term rental industry appear to be in much better shape since the UK markets opened up. tourism and hospitality. . Although there has been a notable absence of international visitors to London, the news that fully vaccinated individuals from Europe and the United States will be returning to England from August 4 should help improve the situation for more. many operators and to stimulate the recovery of housing in the capital.

“It’s interesting to see that not only are the occupancy rate and RevPAR looking good, but the average length of stay has been steadily increasing since April. Customers take fewer but longer trips, as short-term rentals can give them a true “home from home” experience allowing people to combine work and free time.

“As traditional UK holiday destinations fill up, people should turn to see what their cities have to offer. Short-term rentals allow guests to socially distance themselves from others and provide them with the assurance of high standards of cleanliness and safety.

“It should appeal to both leisure and business travelers,” she added.

Patrick Mayock, Vice President of Research and Development at STR, said: “Our pilot study has shown that the short-term rental industry in London has proven to be resilient and a popular choice for visitors to the area. capital city. It will be fascinating to watch what happens to other types of accommodation as restrictions ease and more group and corporate travel return to the market.

“Our report provides those across all hosting industries with high-value visibility of metrics behind performance and trends,” he added.

The main findings of the study include:

Occupation [12 months to end June 2021]

  • Short-term rentals amounted to 62.7% for June 2021, i.e. a rate of 35.7% year-on-year [y-o-y] increase in June 2020. [m-o-m], there was a minor decline of 1.4 percent.
  • The occupancy of the hotel was 40.6% in June, up 61.8% year-on-year and 32.4% more than in May 2021.
  • The serviced apartments were 39.7 percent in June, a year-on-year increase of 126.7%, and 18.6% better than in May 2020.

Average daily rates [ADRs] [12 months to end June 2021]

  • Short-term rentals averaged £ 126.20 for June, up 17.5% year-on-year, but down 5.3% from May.
  • Hotels cost an average of £ 99.40 in June, are up 31.6% year-on-year and are up 14.6% from May.
  • Serviced apartments cost an average of £ 145.70 for June, down 33.6% year-on-year and an increase of 6.6% from May.

Revenue per available room [RevPAR] [12 months to end June 2021]

  • Short-term rentals averaged £ 79.20 in June and saw the strongest growth with an increase of 59.5% year-on-year. They were down 6.6% from May.
  • Hotels cost an average of £ 40.40 in June, which is an increase of 112.9% year-on-year for hotels and 51.7% in May.
  • Serviced apartments cost an average of £ 57.80, saw an increase of 50.5% year-on-year and a monthly increase of 26.4%.

Average length of stay

  • The average length of stay for short-term rentals fell from 10.6 days in May to 11.0 days in June. In June of last year, the average length of stay in a short-term rental was only 9.4 days.
  • For the 12 months up to June 2020, the average length of stay was 6.9 days compared to 11.3 days for the 12 months up to June 2021.

About Michael B. Billingsley

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