London’s hotel market reached unprecedented levels in July 2025, with average daily rate (ADR) and revenue per available room (RevPAR) both soaring to new peaks.
Preliminary CoStar data highlights a notable shift in performance, driven in part by high-profile events such as Wimbledon and the Oasis concert series.
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Highest hotel performance since 2018
London’s average room rate climbed to £234.58, marking a 2.4 per cent rise compared with July 2024. Revenue per available room (RevPAR) increased 3.3 per cent to £207.93.
While the overall hotel occupancy — at 88.6 per cent — rose only modestly by 0.9 per cent year-over-year, it stood as the highest occupancy rate recorded since July 2018.
Impact of major summer events
Two major attractions shaped the month’s performance. During the Wimbledon women’s final night on Saturday, 12 July, occupancy peaked at 94.7 per cent.
That same night also recorded the highest ADR (£276.72) and RevPAR (£262.01) of the month. Throughout the championship, occupancy remained above the 90 per cent threshold on all but three nights.
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By GlobalDataLondon also benefitted from the Oasis concert tour, with three shows held at Wembley Stadium on 25, 26 and 30 July. The second Wembley night yielded occupancy of 91.6 per cent, ADR of £239.33, and RevPAR of £219.15.
Across July, occupancy exceeded 80 per cent on all but two days.
Context in wider hotel market trends
This July’s results contrast with trends across England overall, where the occupancy rate for June 2025 stood at around 83 per cent and ADR fell by 5 per cent to £181, with RevPAR declining by 4 per cent to £150.
London’s relative outperformance underscores the influence of global events on urban hotel markets.
Pre-summer outlook and future supply
Despite July’s strong showing, London’s luxury hotel sector faces potential challenges ahead.
A surge in luxury hotel openings in 2025 — including the Chancery Rosewood, Six Senses, and Auberge’s Cambridge House — will introduce around 757 new rooms across Greater London.
This marks the largest annual increase in luxury room supply since 2014, raising concerns around oversupply and potential rate pressure.
Summary of key figures (July 2025)
| Metric | Value | Year-on-Year Change |
| Occupancy | 88.6 per cent | +0.9 per cent |
| Average Daily Rate (ADR) | £234.58 | +2.4 per cent |
| RevPAR | £207.93 | +3.3 per cent |
