UK chain hotels expected to remain profitable in recession

Chain hotels in the UK are currently facing the most difficult trading conditions since 1991, but are better prepared to deal with the economic downturn than they were previously, according to new predictions.

During 2009, London hotels are expected to see a 10 per cent drop in room revenues (RevPAR), and a further drop of 0.5 per cent in the following year.

In the provinces, RevPAR is anticipated to decline by eight per cent this year, and by two additional per cent in 2010.

The rather bleak outlook has been predicted by TRI Hospitality Consulting as it forecasts a continued drop in the number of overseas visitors to London.

According to the consultancy, hotels are better prepared to withstand this recession than they were the last one, however.

Jonathan Langston, the managing director of TRI, said: “It is our prediction that despite the coming heavy falls in RevPAR, UK hotels will maintain profit conversion at a higher level than they did in the early 1990s.”

He explained: “UK hotels are better prepared for recessionary times than they were in 1991 due to a combination of structural reforms to cost bases during the intervening years and far greater access to markets through today’s enabling technologies. In addition, they enter this recession enjoying much higher occupancies than 1991.”

Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.

www.trihospitality.com