New figures from PricewaterhouseCoopers (PWC) predict a revival in the UK hotel market over the next three years.
PWC found reasons to be cheerful in signs of a global economic recovery, a pick-up in equity markets, and strong growth in UK business investment over the last quarter of 2003.
Improved first-quarter figures from the likes of Hilton International and InterContinental Hotel Group have also given cause for optimism, along with a growth in passenger volumes at London airports and in overseas visitors.
However, PWC warned that uncertainty in the Middle East and rising oil prices could hold back the recovery in travel.
PWC is predicting that UK hotels will boost overall revenue per available room (revpar) by 4.2% in 2004, backed by growth in both average daily rate and occupancy.
It expects growth in revpar to continue through 2005 and 2006, although this may be tempered by an anticipated slowdown in the UK economy in 2006.
London hotels will see the biggest pick-up, with revpar forecast to grow by 4.5% in 2004 and by 8.8% in 2005.
Provincial hotels are predicted to increase revpar this year by 4.1%.
by Angela Frewin
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