Given recent trends in market performance, opportunities to grow profit have become less apparent. Unlike previous years, the balance of short-term performance growth is shifting more toward occupancy, as room rates rise more modestly amid growing price sensitivity among travelers. Therefore, hotel owners and operators must explore every possible revenue stream for their properties while also carefully managing expenses.

Excitingly, the recent announcement of an expanded industry solution from CoStar and STR is unlocking a new level of opportunity across the commercial real estate market. This new standard of success, CoStar + Benchmark, equips you with the tools to measure and improve your performance, generate new corporate leads and expand your portfolio.

STR works with nearly 4,500 hotels in the UK and 85,000 hotels around the world—more than any other data provider. Every owner, operator or brand partnering with us is positioned to gain a competitive advantage.

Previewed briefly below, our 2024 report for the Independent Hotel Show will be issued to attendees following the event with insights spanning top-line performance, guest segmentation, forward bookings and forecasting.

Report preview

After a few slow and down months earlier this year, performance growth picked up in London during the summer months, especially August. Independents and branded properties have taken a different path to growing revenue per available room (RevPAR). Independents have operated at a lower occupancy and significantly higher rates. Even with higher year-over-year growth in occupancy, however, average daily rate (ADR) has come down in independent properties while branded hotels have remained flat in the metric. Outside of the capital, RevPAR growth was at its highest in the late-spring and early-summer. Compared with London, growth has been higher for both brands and independents, but levels were expectedly lower on an absolute basis.

Looking ahead, STR and forecast partner, Tourism Economics, modeled projections on increasing travel price sensitivity for the UK and Europe as a whole. For London especially, RevPAR growth in 2025 will be demand-driven, with occupancy growth outpacing ADR as new supply increases competition in the UK’s capital market. RevPAR growth across the rest of the UK will be slightly more balanced, as domestic corporate and group demand in regional markets continues to improve.

The full report will be presented at IHS24 on Tuesday 15 October in the session 'State of the nation: An STR overview for hoteliers' with Michal Rao, Regional Manager, Northern Europe - STR. Secure your ticket to Independent Hotel Show 2024 here.