Midmarket chain operators face the greatest challenge

The midmarket hotel chains remain the largest sector in Europe, but also the most problematic to operate, Paul Slattery, director at hospitality adviser Otus & Co, told the summit.

Slattery said the midmarket operators faced the greatest challenge of all hoteliers when it came to growing and securing decent returns for investors.

Slattery's sentiments were echoed by a panel of hotel real estate investors, who discussed the prospect of consolidation in the UK sector.

"The UK's midmarket is all over the place," said Marty Kandrac, vice-president of the Blackstone Group.

Ian Livingstone, managing director of London & Regional Properties, added: "Rebranding hotels in their local markets would be commercial suicide. It's not something we're interested in. The midmarket is being constantly eroded by the budget sector, so it's not attractive to investors."