Shares in blue chip stocks Intercontinental Hotels (IHG) and Whitbread (WTB) dip as London’s absolute occupancy rates for October hit their lowest levels since 2008.
US-based data tracker STR says revenue per available room has fallen by 11.4% to £127.23 and occupancy rates are 4% lower at 85%.
Intercontinental and Whitbread are trading 1.2% and 0.3% lower at £30.73 and £34.69 respectively.
Both companies have hotels in London as Intercontinental owns the Holiday Inn chain, while Whitbread is behind the Premier Inn brand.
The average daily rate (ADR) has slumped by 7.7% to £149.72 year-on-year, marking the biggest decline since 2001.
STR says supply has risen by 2.9%, but demand has fallen by 1.2%.
The company says demand has dropped across weekdays and weekends with the market failing to recapture high performance levels around the same time last year from the Rugby World Cup.
