Interest rate cut to give ‘renewed confidence' to hospitality property market

Property agent Christie & Co believes yesterday's interest rate cut will give "renewed confidence" to buyers and sellers in the hotel, pub and restaurant sectors.

The Bank of England cut interest rates yesterday from 5.25% to 5% in an attempt to boost the UK economy, currently suffering the effects of the credit crunch.

Jeremy Hill, head of hotels at Christie & Co, told Caterersearch: "The cut in interest rates will give renewed confidence to the market. The demand for high quality, well-located property is still there, and banks are willing to lend. However they are adopting more stringent lending criteria."

Although industry experts have warned more pub group failures are likely, hotel operators are pushing ahead undeterred with budget chain Travelodge and Luxury group InterContinental planning to open 44 hotels each in 2008.

Whitbread has also spent £18.5m acquiring three hotels in London from the real Hotel Company for its Premier Inn brand.

• Lester Hotels has bought the Cwrt Bleddyn Country House Hotel and Leisure Spa for an undisclosed sum off an asking price of £6 million. The South Wales hotel has 44 bedrooms with planning permission for a further 18. Lester currently operates four hotels for private owners through its management company Lester Hotels Management Services. Christie & Co acted on behalf of Cwrt Bleddyn owner Roadbeach.

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Christopher Walton

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