UK hoteliers expect further growth
According to a TRI Hospitality Consulting survey, the majority of the UK’s chain hoteliers are optimistic that 2008 will be a better year than 2007. The survey found that 83% of hoteliers expect their revPAR to be higher this year than last. TRI said one potential reason for the hoteliers’ confidence was that over the last two years corporate demand for branded accommodation has been particularly strong in commercial locations. As a result, many UK branded hotel operators have become accustomed to turning away business during the working week. The survey also found that the majority of respondents consider UK-based consumer spending will be the most important influence on hotel performance in 2008. This reflects the belief that with levels of consumer spending forecast to fall this year, finding ways to maintain or increase leisure demand will be a significant challenge. The results of the survey have informed TRI’s latest forecasts for 2008. It now expects UK revPAR growth of 3.6% year-on-year, driven entirely by rates, which are forecast to increase by 3.7%, with occupancy expected to remain flat.