10 fleurets.com statistics reported by STR on a 12 month moving average basis for the two years to July 2018 are summarised below. In the case of London, the 4.9% RevPAR growth to July 2017 has not been matched this year, and although hotels continue to benefit from a strong leisure market aligned to the weak pound and buoyed by a number of key events, hotels face challenges from economic uncertainty, significant increase in hotel supply and suppressed business demand. Expectations are that London is likely to continue with largely flat performance, with forecasters anticipating a potential small decline next year, primarily as a result of occupancy levels slipping. Regionally, hotel occupancy has been relatively consistent during the last few years. Current levels are enabling hotels to continue to drive ADR, the 12 months to July 18 reflecting 2.3% growth on the previous year, driving 2.5% growth in terms of RevPAR. Further growth, albeit more subdued, is anticipated. New hotel and room supply remains a dominant disrupter within the region of 10,000 new rooms expected to enter the supply chain in London and approaching 15,000 regionally over the next year or two. Ten years ago, around the pre- recession market peaks, it was common for hotel purchasers to pay prices that included material hope value to reflect the untapped management opportunity and investment potential. In the current marketplace, buyers and their valuers are more cautious, reflecting market driven opportunity in pricing, whilst not underestimating risk. Buyers are being more selective, applying a greater degree of due diligence in their appraisals. 2018 London RevPAR -0.9% Source: STR London UK Regional £0.00 £20.00 £40.00 £60.00 £80.00 £100.00 £120.00 £140.00 £160.00 £0.00 £10.00 £20.00 £40.00 £50.00 £60.00 £70.00 £80.00 £90.00 £170.00 £100.00 2017 ADR 2018 2017 ADR 2018 2017 Occupancy 2018 2017 2018 2017 2018 2017 Occupancy 2018 70.0% 65.0% 60.0% 55.0% 50.0% 75.0% 80.0% 85.0% 90.0% 82.6% £147.22 £121.65 £148.11 £121.25 75.8% £53.68 £70.79 81.9% 76.0% £55.01 £72.41 2017 ADR 2018 2017 Occupancy 2018 % Change 2017 2018 -1.0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2017 ADR 2018 2017 2018 2017 Occupancy 2018 2.9% 0.6% 4.9% - 0.3% 2.0% - 0.9% 0.6% 0.2% 3.7% 2.5% 3.0% 2.3% % Change RevPAR RevPAR RevPAR RevPAR