Farnborough: Lift off or nose-dive for London hoteliers?
Published: 22/07/2008
London hoteliers reported a revPAR increase of 35% during the
seven days of Farnborough Airshow compared to the same days last year. The daily
results from STR Global highlight that revPAR was mainly improved by average
room rate increases. The occupancy level for the seven days accumulated to 87%
compared to 86% during the same days last year.
Farnborough AirShow celebrated its 60th anniversary this year
and over 1,500 exhibitors showcased their products to the industry and wider
audience from 14th to 20th July 2008. The air show brings welcomed business to
the hoteliers in London which benefit - in alternation with Paris - every two
years from the show.
The graph below shows the peak of £198 revPAR on 15th July 08,
as the first few days of the air show are dedicated to trade visitors only. The
air show organisers expected around 140,000 business visitors in the first five
days. During Farnborough 2006 the highest revPAR of £155 was achieved as well
during the second day of the show – 18 July 2006.
London daily revPAR
Source: STR Global
Whilst occupancies during the 7 days increased only by 2% compared to the same
days the previous year, it is average room rate which had lift off. The
additional demand generated an ADR increase of 33% to £174 within the 7-day
period compared to £131 during the same period last year.
London daily ADR and occupancy
Source: STR Global
Overall London hoteliers reported an 18% increase to £144 revPAR for the first
20 days of July 2008, compared to the same time last year. With hotel rooms
almost completely sold out, at around 88% occupancy, the increase in average
room rate drove the revPAR growth. Within this uncertain economic climate, an
event like Farnborough Air show is a welcomed sight to London hoteliers.
Note: All Analysis in UK£
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