Industry expects slow start to the millennium
Most hoteliers expect business to get worse or show no improvement next year, according to an industry conference last week.
Delegates at the 11th annual European hotel industry investment conference in London were asked if they thought the performance of UK hotels would improve, decline or remain static in 2000.
Most of those at the event were directors, chairmen or chief executives of national and international hotel chains.
Almost a quarter (24%) thought the sector would decline, more than a third (35%) thought it would remain the same and 41% said it would improve.
Nicholas van Marken, a partner in hospitality consulting services at Arthur Andersen, said: "There was not a dramatic downturn this year, so people expect it to happen next year.
"I think we will see a few points knocked off occupancy and probably a slight decline in average rates across the UK."
In the nine months to September 1999, the average room rate in the UK slid 0.5% to £72.36, compared with £72.76 last year, while occupancy fell from 74.8% to 73.7%.
Graham Windle, strategic development director at Whitbread, said hotels without "a strong product or a strong brand would suffer". Tony Troy, managing director of Principal Hotels, added: "There is a lot of nervousness around. We remain positive but we are not saying it is going to be a boom year."
More than three-quarters of the delegates said they expected hotel performance to improve next year in western Europe and more than half thought this would happen in eastern Europe.
A massive 94% said they could foresee further consolidation opportunities in Europe.
by Louise Bozec
