BRITAIN AT WAR – How has UK hospitality been hit?

Midmarket hotels experiencing a downturn, conferences cancelled and occupancy falling further was just some of the feedback Caterer had from the industry this week. But, although American traffic has slowed, some in the luxury hotel market report that business is holding up, buoyed by guests using spas and leisure facilities.

One hotelier in the Midlands, part of the Choice group of hotels, said his business had taken a direct hit this week with a banquet for 150 cancelled. "People don't feel like celebrating. Occupancy is usually 65% this time of year, but we have about 45%."

For Christina Broudlidakis, general manager of the Royal Adelaide hotel in Windsor, Berkshire, a downturn came before the outlbreak of war, with American and international business tailing off over the past three or four weeks.

"We haven't had any cancellations this week, but usually this time of year we have conferences every day and this week we only have two small ones. We are usually fully booked but we have 50% of our rooms vacant."

Jarvis Hotels reported that business was flat, with the threat of cancellations. Lawrence Alexander, commercial director, said queries had been received from its central reservations department over its cancellation policy.

"We have only had one small group cancellation, an American corporate client who said that they were not allowed to travel but we have had queries over what our policy is."

Andrew Beale, managing director of Beales Hotels, Hertfordshire, said all three of the group's hotels had seen a tangible effect of the war. "At a 70-person international conference booked at our West Lodge Park in Hertfordshire last weekend, 10 people cancelled citing nerves about travelling.

"Across the company we are 23.9% down on this week last year - it's the first week I can recall such a drop."

In Edinburgh Dagmar Mühle, general manager of the Caledonian hotel, said reservations had been "very quiet", although banqueting sales were up. She said occupancy for March would be about 58% against 68% last year.

But it was a mixed picture at London's luxury hotels. Andrew Boardman, general manager of Hazlitt's hotel, said he had yet to feel the impact. "In fact, we're having one of our busiest months. We've had full occupancy for the past few nights."

Liam Lambert, general manager of the Mandarin Oriental Hyde park, London, said his hotel spa was full, and the two restaurants and bar were also "heaving" last weekend. "People just want some sort of release," he said.

Overseas business at the Mandarin Oriental was certainly down. American visitors, usually 28% of total business, dropped to 18% and total anticipated occupancy for March was 68% compared with 76% this time last year.

John Stauss, regional vice-president and general manager of the Four Seasons Hotel London Park Lane, said occupancy was down about 10 percentage points. Around 45% of the hotel's guests come from North America and whereas the business part of this mix was still travelling, leisure guests were mostly staying at home.

HOW ARE RESTAURANTS FARING?

Half the restaurants polled by Caterer claim the Iraq war has had no impact on their business since it started six days ago.

About 40% said trade was down last week by between 1% and 5%, but said it was too early to say whether the slump was due to the war or other factors. The good weather and the anti-war March in London could also be to blame.

Restaurants in Manchester and other major cities outside London said business was slow on weekdays but up on Saturday because of anti-war marches and the increased numbers of people in city centres.

At the Atrium in Edinburgh, a 40-strong party of oil executives cancelled after being told not to travel, but overall the restaurant was said to be busier than at the same time last year.

Chintamani, the recently-opened Ottoman restaurant in London, said business was down 25% because of its regular Arab and Middle Eastern clientele cancelling. Manager Fisun Tasgin said many customers were upset about the war.

Several bar groups said business was up on last week by between 10% and 16%, and did not expect the war to affect business.

But most restaurants polled believed that if the war continued for several months, they would start to see an effect on business, with caution over spending a primary factor.

The remaining restaurants questioned believed business would stabilise, with customers "getting on with it" as the war continued.