No upturn for UK hotels this year and room rates set to stagnate until 2013
Tuesday 09 March 2010
UK hoteliers will not see trading conditions improve this year and forecast it will be 2013 before room rates in Europe return to levels seen before the financial crisis.
Just 2 per cent of 155 UK hotel executives surveyed forecast a "sustained upturn this year", sharply down on the 37 per cent who last year forecast that 2010 would bring "solid growth", found the DLA Piper 2010 Europe Hospitality Outlook Report.
More than half – 52 per cent – of UK hoteliers fear that room rates will not return to pre-crisis levels until after 2012. But executives at large hotel chains are more bullish and 70 per cent expect to grow their market share in 2010, as they continue to focus on rebranding and converting their small chains to bigger brands.
Karen Friebe, the global co-chair of DLA Piper's hospitality and leisure practice, said that low room rates were a "significant problem" – with rates down by up to 30 per cent over the last year. This was the main reason for the gloom among the 417 European hotel executives surveyed.
Ms Friebe said: "But, while there are signs that occupancy levels have stabilised, there is growing concern throughout the industry that room rates will remain low for years to come and conversions are unlikely to compensate for reduced new build activity." She added: "People are just not travelling for business purposes."
But she identified a few glimmers of hope, including a rise in new build activity and the growth opportunities in Brazil, Russia, India and China.
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
- 3 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 4 Friends 20th anniversary: Six things we wouldn't have without influential comedy series
- 5 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Scottish independence referendum results: David Cameron pledges plans for 'English votes for English laws' by January
Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...
To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...