No Reason to Fear Credit Crunch

By Alan Lodge

- Last updated on GMT

Related tags: Credit crunch, Hotel

New PriceWaterhouseCoopers figures suggest global financial uncertainty may even turn out to be a positive thing for the UK hotel industry

FEARS of a meltdown in the UK hotel industry are exaggerated, according to leading stockbroker Price WaterhouseCoopers.

The latest forecasts from the firm predict that the industry could possibly go through a slowdown due to global financial uncertainty, but says the credit crunch may even turn out to be a positive thing for the industry.

The figures predict UK revpar (revenue per available room) will rise by 4.1 per cent in 2008 and by 3.6 per cent in 2009. Revpar in London is expected to grow substantially by 6 per cent in 2008 and 4.4 per cent 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."

Liz Hall, head of hospitality research, urged hotels to push on through the financial uncertainty by doubling their efforts to bring in customers as corporate budgets are slashed and consumrs get moer frugal.

"All eyes will be on the economy in the next 18 months," she said.

"Hotels should help deliver a unique experience which consumers may recommend to their social networks -online and in person."

Related topics: Trends & Reports

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