If you've decided to set up your own hospitality business but you can't decide on the sector, it may be worth taking a look at residential conference centres.

According to a survey of the performance trends of UK residential conference centres published last month by leisure business consultant HLL Humberts Leisure, the sector has performed well in recent years, despite the recent hardened operating conditions.

In the study of 12 UK conference centre businesses - although respondents reported that total revenues declined slightly in 2003, reflecting increased pressure on rates by conference buyers - bedroom occupancy levels rose to about 43%, an increase of 10% over 2002.

According to Bridget Baker, managing consultant at HLL Humberts Leisure's consultancy team, venue managers were able to maintain occupancy levels by seeking other sources of business away from the traditional conferences and meetings segment, although it still represented about 71% of the trade.

A major advantage conference centres have over hotels is that they can operate with what would be considered a low occupancy level and still have a decent turnover. Crucially, unlike most hotels, which have to stay open when there are only a few guests, a conference centre can simply close its doors, saving energy and staff costs.

"Conference centre businesses are clearly holding their own in challenging times," says Baker. "Despite the relatively low occupancy levels, the conference centres are more efficient than hotels, as they operate in quite a lean way. And this should offer a sound base to improve on profitability as demand levels increase."

When it comes to setting up a successful conference business, Baker advises:

- Location is critical, as you need to be accessible.
- You need lots of meeting space and break-out areas.
- A rural "getaway" location, preferably with grounds for activities, is often preferred, as it offers fewer distractions for delegates.
- Leisure facilities are attractive but not essential.
- Good-quality catering is a must.

www.humberts-leisure.com