UK hotels are unlikely to experience a ‘meltdown‘ in 2008 or 2009 but could experience a slowdown, according to the latest forecast report from PricewaterhouseCoopers.
Although there will be a fallout from the current global financial uncertainty, hotels are well placed to cope. UK revpar (revenue per available room) is forecast to increase by 4.1% in 2008 and 3.6% in 2008. In London, revpar is expected to grow by 6% in 2008 and 4.4% next year.
PwC partner Robert Milburn said: “The credit crunch could even be a good thing for the industry. Large developments could be postponed and result in less new supply coming on the market in 2009. This will help keep rates up.”
However, head of hospitality research Liz Hall said tighter corporate travel budgets and more careful consumer spending could affect the industry.
“All eyes will be on the economy in the next 18 months. Hotels should help deliver a unique experience which consumers may recommend to their social networks –online and in person.”