Source/Contact: Leisure Opportunities, 17/02/2009

UK chain hotels are facing the most challenging trading conditions in 17 years, according to analyst TRI Hospitality Consulting.  The firm predicts that hotels in London will experience a 10 per cent drop in RevPAR this year, followed by a further 0.5 per cent dip in 2010.  RevPAR is expected to decrease by 8 per cent elsewhere in the country in 2009 and by a further 2 per cent in 2010. This scenario is based on the UK economy contracting by 1.7 per cent this year and 0.2 per cent growth in 2010.  The number of inbound visitors, which accounts for more than 50 per cent of London hotel overnight stays, is estimated to have decreased by 2.7 per cent in 2008 and is expected to drop by a further 0.7 per cent this year, according to tourism agency, VisitBritain.