Hospitality Directions Europe: Issue 20

The UK hotels sector continues to be battered by the worst recession in 60 years. Trading and values have been hit hard with owners, investors and operators impacted severely. However, there are some signs that the global economy has come back from the brink and that for UK hotels the worst may be over.

PricewaterhouseCoopers' latest UK hotels forecast shows that, despite the continuing fall-out from missing corporate travellers and the slump in the conference sector, hoteliers are more optimistic than they were earlier this year. Although it seems a way out of the woods is closer and revenue declines are slowing, a sustained recovery remains some way off. We see no return of the conference sector or corporate travel over the next 12 months and consequently see no rate recovery on the horizon.

Our report presents our outlook for hotel performance in the UK, London and the provinces to 2010. We expect RevPAR growth rates to deteriorate further to the end of 2009 but we do expect the rates of decline to slow sharply in 2010.

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