British hotels slash rates

Hotels in UK cut rates as closures threaten

April 2009

previous article - news index - next article

The effects of the recession seem to have hit the hotel industry and a new report by DLA Piper a law firm confirms the worst.

In a poll of 143 hotel executives 95% predicted bankruptcies in the next year and 25% of those that responded thought at least 10 hotel chains would go into administration this year.

Recent reports have shown a sharp decline in business and leisure travel with one leading accountants PricewaterhouseCoopers forecasting a 19% decline in hotel revenues across the UK with London the hardest hit.

Room rates in London have fallen to an average of £100.31 their lowest level since 2005, whilst occupancy levels fell by more than 13% in 2008 to 69% a 17 year low.

Robert Milburn from PricewaterhouseCoopers said “Given that hotels normally lag behind the cycle by two quarters, we are likely to be on the cusp of the worst few months of the year”.

The effects of the recession have also made their mark on the budget hotel sector with Premier Inn being the first to announce a drop in occupancy levels.

All this bleak news however is welcome to the holidaymaker looking to stay in a hotel since hoteliers are being forced to cut rates. Travelodge is offering rooms this Easter at just £19 per night and luxury hotel Malmaison hotel in Oxford are offering rooms including breakfast for just £1 as long as you spend £75 or more when dining in their restaurant.

previous article - news index - next article