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The full impact the recession has had on the UK's hotel industry was laid bare today by new figures showing that sector insolvencies soared 120% since last June.
Research by administrators PricewaterhouseCoopers also showed that 90 hotels have already failed in the first half this year, compared with 36 in the first six months of last year, a rise of 150%.
But London hotels have held up better than the rest of the UK. Although 15 hotel groups failed in the first quarter of this year — the highest rate since the last recession — levels have returned to the average rate of six hotel business failures per quarter in the last three months, as the weak pound boosted European visitor numbers.
But Stephen Broome, a director at PricewaterhouseCoopers, warned that swine flu could easily upset the trend. He said: “The uncertainty caused by the acceleration of swine flu cases, coupled with the forecast strengthening of the pound, means hoteliers should resist the temptation to start raising room rates. Any hiking could easily upset the current balance that exists between both value-seeking London tourists and hoteliers alike.”
Reader views (4)
Top tip: Turn up at a 5 star London hotel at 6 or 7pm and ask for a room. They'll tell you some typically fantastical London hotel rate. Offer them half. They'll make suitably reproving remarks, go into the back, come back and ask "how many nights". Tewll them say, 3, and the deal's done! Worked for me!
- Michael Spencer, Toronto, Canada, 28/07/2009 13:42
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Wha amazes me, is that no matter how hard business is for them, no matter how few rooms are letting at the rates they want - the rates always stay as high (perhaps with a slight adjustment for seasons etc).
They'd rather risk bankruptcy that return something to the market they've been shafting all these years (by lowering) prices.
You heard me - it's below them to lower prices.
- Alex, London, 28/07/2009 12:19
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Hotels in the UK are a rip-off.
I am very surprised any of them are still in business.
Yesterday I visited Grange-over-Sands(opposite Morecambe Bay) and the cheapest hotel flop-house was GBP50.00 per night WITHOUT BREAKFAST!!
- Reuben Camara, Republic of Morecambe, UK, 27/07/2009 13:19
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Hotels are too expensive for what they are and the cheaper alternatives (like renting or exchanging a flat for the weekend) are better.
- Madmax, London, UK, 27/07/2009 10:28
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