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Hoteliers warned of rate rises to come

01 January 2000
Hoteliers warned of rate rises to come

A firm of chartered surveyors is urging hoteliers to wake up to the possibility they could face at least a 50% rise in their business rates from April 2000.

The market is much more buoyant than it was during the last revaluation in 1993, and rates, based on the value of properties, will go up sharply as a result.

Gerald Eve, which has published a report examining the potential impact on the hospitality industry of the next rating revaluation in April 2000, predicts budget hotels will be among the worst hit.

Jerry Schurder, head of rating, said: "The majority of hotels will be valued primarily by direct reference to trading performance, and the majority of assessments will rise, some by 50% or more.

"When undertaking business planning and budgeting for the future, one should not assume the rates of today will continue, because there will be changes."

Restaurants, however, are more likely to be based upon a rental value calculated on a floor-area approach at price per square foot, unless they form part of a hotel, in which case they will be included in the valuation of the premises.

"They should take advice so they are not overcharged," said Schurder.

Copies of the report are available free of charge from Gerald Eve on 0171-493 3338.

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