| Journal: TWUK | Section: |
| Title: | Issue Date: 21/08/00 |
| Author: | Page Number: 28 |
| Copyright: Other |
Pricewaterhousecoopers report
Survey forecasts UK overcapacity problems
Report by LEEWINTER
NEW hoteldevelopment could soon outstrip demand for beds in some parts of the UK according to a PricewaterhouseCoopers report.The survey entitled Hospitality Directions – Europe Edition, Forecasts and Analyses for the Hospitality Industry claims although some cities can sustain the new buildings, the hotel market in some regional centres outside London is at risk of saturation. The north of England was highlighted as one area that may suffer from a glut of properties but it would draw on specific cities.
Aseparate study commissioned by the Edinburgh and Lothian tourist board, published in April, had similar results.
The survey found hotel accommodation in the Scottish capital would increase by 2,039 rooms by 2003, while it forecast a fall in hotel room occupancy rates from 67% to 63% by 2005.
A PricewaterhouseCoopers spokesman said: “In the report we looked at the rate of hotels being built or acquired in city centres. There has been quite a lot of activity in Newcastle and Leeds and many new hotels in Manchester.
“It would not be fair to name the specific areas where overcapacity is a problem.”
The report said budget hotels are expected to play a larger role in driving up new room stock. It claims the number of budget hotel rooms have trebled over the past five years to an estimated 22,000.
According to data from Reuters, included in the report, that figure is expected to continue at a similar pace with an estimated 75,000 budget hotel rooms by 2004.
Various companies including Friendly Hotels, Premier Hotels and Whitbread and Punch Taverns have all announced plans to open new budget hotels this year.
Edinburgh: is likely to fall victim to an overcapacity of hotel rooms in the next few years