UK hotels see worst downturn in 30 years

The UK hotel sector is experiencing its worst downturn in performance since 1977, according to consultancy firm PricewaterhouseCoopers (PWC).

This year revenue per available room in London is expected to fall by 15-18% compared with 2000. This is worse than the capital's hotel performance during the 1991 Gulf War, when revpar fell by 12.3%.

Revpar is set to decline by 12-13 % in the UK overall.

Further declines are forecast in 2002 with revpar falling by 3-6% and even sharper declines of 4-9% in London.

Liz Hall, research manager at PWC's hospitality and leisure group, said: "So far intra-European travel has been more robust, as Europeans don't seem to be as afraid of travelling as the Americans, but Europeans too may change both personal and business travel plans if the economic slowdown intensifies."

PWC forecasts that growth will not return until 2003 although demand should begin to pick up from mid-2002.