Tough times predicted for UK hotel industry

26th March 2009, 11:58am

Another difficult year lies ahead for 2009, according to Hotel Britain 2009, PKF's definitive guide to the performance and prospects of the UK hotel industry.

The report reviews the performance of 548 hotels representing over 88,000 rooms across both London and the regions.

According to Robert Barnard, hotel consultancy services partner at PKF accountants & business advisers, UK hotels face a challenging year in 2009 due to the deepening economic downturn. However, exceptional growth in the market over the last five years does give the industry a strong starting point and international events, new concepts and further investments may soften the impact.

Barnard said: "There is no doubt that there are challenges ahead, but while this 2009 edition of Hotel Britain is the gloomiest yet, there are important positives to remember. The UK is hosting a number of international sporting events in 2009 such as The Ashes and the ICC World Twenty20 and these may boost UK visitor numbers.

"Equally, Sterling has dropped to record lows against the Euro and the US Dollar and this should encourage visitors from both Europe and North America who, in the last few years, have avoided the UK due to the strength of Sterling.

"The North American visitor market to the UK may also be buoyed on two fronts by the appointment of new USA President Barack Obama: firstly, because we are no longer in an election year when most Americans tend not to travel; and secondly, by aiding consumer confidence which may encourage people to travel.

"Finally, while the luxury sector is slowing, the budget end of the spectrum is still reporting positive results and both Premier Inn and Travelodge have aggressive development plans for 2009."

During 2008 UK hotels saw rooms yield fall from £74.33 in 2007 to £74.10 in 2008. Occupancy was also down – it dropped 2.5% to 73.9%. Meanwhile hotels in the regions reported negative growth with rooms yield down 2.4% on 2007 to £53.55. Occupancy also fell, down 2.9% to 70.5%, but AARR managed a small increase of 0.5% to £75.99.

Related Articles:

• 29 Sep 2010 - UK hoteliers achieve healthy August, says PKF
• 21 Jun 2010 - Positive outlook for UK hoteliers in May
• 24 May 2010 - Mixed fortunes for UK hoteliers
• 01 Apr 2010 - UK hoteliers survive difficult 2009
• 22 Mar 2010 - London hoteliers achieve healthy growth
• 22 Feb 2010 - Snowfall in January affects many UK hoteliers
• 25 Jan 2010 - Hoteliers cash in on December festivities
• 14 Dec 2009 - Travelodge hotel group and Twenty10 launch £100m property fund
• 26 Oct 2009 - London hoteliers continue to fill rooms
• 16 Oct 2009 - Planning permission granted for Travelodge's largest hotel
• 24 Aug 2009 - Summer holiday season worrying for hoteliers
• 27 Jul 2009 - UK hoteliers experience decline in first half of the year
• 29 Jun 2009 - Occupancy increases for London hoteliers, but the regions struggle
• 18 Jun 2009 - Travelodge launch £100m raid for struggling hotels
• 05 Jun 2009 - Business set to boom for UK hoteliers
• 29 Apr 2009 - Hotel room sold every second at Travelodge
• 20 Apr 2009 - Further falls for UK hoteliers
• 26 Jan 2009 - UK hotel room rates continue to decline
• 16 Dec 2008 - UK hoteliers continue to feel pinch
• 24 Sep 2008 - UK hotels steady despite gloomy August
• 01 Sep 2008 - Steady growth for London hoteliers
• 28 Jul 2008 - London hotels remain steady
• 09 Jul 2008 - Hoteliers report steady growth
• 28 May 2008 - London hotels see strong growth
• 29 Apr 2008 - UK hoteliers experience slowdown in March
• 18 Apr 2008 - London hotels report 5.8% rise in room rates
• 11 Apr 2008 - UK hotel sector positioned well for 2008
• 26 Feb 2008 - UK hotels soar in January
• 01 Feb 2008 - Healthy December for UK hoteliers

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