Slump among five-stars is double that of boutiques

Five-star hotels in London experienced twice the decline in business that boutique hotels in the capital suffered over the past year, according to research by American Express.

In the year to August 2002, the report found the number of visits to "deluxe" hotels dropped by 12%, compared with a drop of 6% among boutique hotels.

However, when it came to expenditure, the average spend per visit to the five-star hotels dropped by 4%, while those visiting boutique hotels spent 8% less than in the previous year.

The author of the report, Hans Lindh, director of lodging and restaurant industries for American Express Establishment Services Europe, said that boutique hotels may have been more willing to offer discounts to fill their hotels than their five-star counterparts.

Source: Caterer & Hotelkeeper magazine, 5-11 December 2002