U.K.’s Budget Hotel Sector Growth Seen Slowing

LONDON— The United Kingdoms budget hotel segment continued to grow through last year, but at the slowest rate since 1993, according to a recent Deloitte & Touch survey. The firms sixth annual budget hotel survey revealed that the number of budget hotels in the U.K. grew by 6.4% between 2000 and 2001 to 847. The number of rooms increased by 10.3% to to 51,900. This was despite the impact of foot-and-mouth disease, 9/11 and general economic uncertainty. However, occupancy levels fell, as did average achieved room rates in London budget hotels. Deloitte & Touch noted London occupancy levels fell from 90% in 2000 to 84% in the first six months of 2001 and 81% in the second half. Achieved average room rates increased slightly in the first six months of 2001 to £59.03 (USD$86.18)— against £58.33 (USD$85.16) in 2000— but dropped to £57.28 (USD$83.63) in the second half. Outside London, Deloitte & Touch found that occupancy was 74% in the first half of 2001 and 77% in the second, compared with 81% in 2000. Average room rate rose from £37.91 (USD$55.35) in 2000 to £39.77 (USD$58.06) in the first half of 2001 and £40.48 (USD$59.10) in the second half. SOURCE: caterer.com