Tightening global economic conditions are unlikely to have a major impact on UK hoteliers, industry analyst PricewaterhouseCoopers (PwC) says.
PwC’s Hospitality Directions: UK Hotel Forecast acknowledges there will be fallout out from global financial uncertainty, but says hotels are well placed to cope and there are still revenue growth opportunities.
PwC UK leader of Hospitality and Leisure Robert Milburn says this is a time for hotels to “hold their nerve”.
“While the industry will feel the pinch from the latest economic situation, it is coming from a good position with some excellent products in the market,” he says.
“In fact, UK hotels overall should still see reasonable growth through to the end of 2009.
“But the economy is still very fragile at present and another tilt could have a more significant impact on the sector.”
PwC predicts UK revPAR will grow by 4.1 percent in 2008 and 3.6 percent in 2009.
London revPAR is expected to grow six percent in 2008 and 4.4 percent in 2009.
PwC says occupancy levels will remain flat or decline slightly.
PwC head of hospitality research Liz Hall says there are many factors that influence the market, not just economic conditions.
“There are many intangibles that drive consumer choice,” she says.
“Many operators have invested heavily in quality products and service in recent years.
“This should pay off now by helping deliver a unique experience which consumers may recommend to their social networks – online and in person.”
By Elizabeth Clifford-Marsh