Deloitte

UK HOTEL BOOKINGS REMAIN FIRM DESPITE CREDIT CRUNCH CONCERNS – AS OCCUPANCY RATES INCREASE IN BRISTOL AND SWINDON

Bristol‘s hotel sector has shown a partial recovery in the last quarter, while Swindon‘s continues to prosper, according to a new survey from leading business advisory firm Deloitte.

The firm‘s latest HotelBenchmark CORR Survey reveals that the UK‘s hotel market has maintained high levels of growth in the year to September, with revPAR (room revenue per available room) up 6.8 per cent.

In all, five UK cities have posted double-digit increases although the rate of growth is down on that seen in the six months to the end of June, when revPAR had increased 8.3 per cent.

While occupancy rates for hotels in Bristol have recovered since the last survey, up 2 per cent to 72 per cent, the city has seen slight falls in the average hotel room rate (down £3 to £68) and revPAR figures (down from £50 to £49).

However the situation in Swindon continues to improve, with small increases in hotel occupancy rates, average room rates and revPAR, at 68.4 per cent, £59 and £40 respectively.

Denis Woulfe, Senior Practice Partner at Deloitte in Bristol, said: “Fears of a slowdown following this summer‘s global financial crisis have not yet materialised in the UK hotel market.

“For the hotel industry, demand is driven by both the business and consumer markets. Most companies continue to generate profits and corporate bookings remain strong, while consumer spending has not yet declined as unemployment levels remain low.

“The situation remains positive in Swindon but less so in Bristol, where we should begin to see an improvement, particularly in average room rates, as the Cabot Circus retail development nears completion.”

Scotland saw the best hotel performance of the three countries in the United Kingdom, according to the latest Deloitte survey, with revPAR growth across the country of 8.9 per cent. Aberdeen had the highest growth of any UK city, with revPAR increasing 18.6 per cent, boosted by high corporate demand in the oil and gas industries.

ENDS 14th November 2007

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk