This short market briefing compares the US and UK experience of how the recession is impacting the hotel sector. To date it has been a depressingly similar story for both countries as a whole as hoteliers have struggled to fill rooms without cutting their prices but, as this article shows, the plot could be set to change in 2010.

Putting aside the country-level similarities, there have been interesting differences as well. Contrast two iconic cities - New York and London. Why did London’s hotels suffer RevPAR declines only a quarter those of New York in 2009? What are the prospects for US consumer spending this year compared to the UK? The article offers some answers and insights into where we might see the strongest recovery and what factors might derail that recovery - each side of the pond.

US consumers and businesses are expected to lead the US into an earlier and stronger economic upturn than is forecast for the UK, where more sluggish economic growth in 2010 could mean a slower paced and weaker recovery for the hotel sector. In addition, prospects of public sector cuts in the UK, and intense budget pressures for state and local governments in the US, could further slow the rebound in both countries.

Overall we still expect a continued recovery in 2010, albeit at an uncertain pace, and although we are by no means out of the woods yet, the way out is starting to look clearer on both sides of the Atlantic.