STR Global releases market performance for May 2009 for Gatwick and Heathrow

STR Global releases market performance for May 2009 for Gatwick and Heathrow

The average daily rate of Gatwick hotels has been in almost continuous decline since the beginning of 2008, with double-digit drops in year-over-year monthly ADR for four out of the first five months of 2009. The ADR decline accelerated sharply at Heathrow hotels, with falls in excess of 12 percent for April and May 2009. Occupancy followed a similar downward trend at both airports since the momentous financial events of September 2009, although an upswing was apparent in the last few months.

The declines in occupancy partly can be attributed to the increase in room supply in both markets. Gatwick saw the addition of 264 new rooms whilst the opening of Terminal 5 at Heathrow in March 2008 led to the creation of more than 1,294 new rooms, including 605 rooms at the Sofitel London Heathrow hotel.