UK hotel rates continue to decline

The global hotel market continues to feel the impact of the economic downturn, and the UK sector is no exception, according to the most recent Hogg Robinson Group (HRG) survey.

In the survey, HRG found that most regions worldwide have seen declining hotel room rates for the first half of this year, in local currency terms.

All major UK cities recorded falling room rates for the period as well.

Hotels in London fared slightly better than those in provincial areas, as visitors came to the capital on the weakness of the pound against the euro and the US dollar.

Margaret Bowler, the director of global hotel relations, said: “As forecast at the start of the year in our 2008 annual hotel survey, mid-year results have shown that the international hotel market is continuing to see average hotel rates fall in many regions. The latest figures suggest that the industry has some way to go before rates stabilise.”

She went on to say: “With all key global cities recording rate declines in both quarters, London was the only city where decline slowed marginally. Despite the overall downturn in rates across the board, the industry is doing a great job of restructuring and adapting to the market conditions.”

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