Colliers Robert Barry has become the latest property agent to state the hotel industry is well placed to weather the credit crunch, describing the sector as “robust” in a new report.
The company’s Market Review report claims the hotel market is an “exception” to the doom and gloom forecast for the general UK economy, because of a shortage of supply and increasing demand.
Christopher Moore, director at Colliers Robert Barry’s, said: “Funding is still very much available for a hotel that has a good track record and operators who have good bank relationships”.
He added: “There’s a big difference between now and the early 1990s, the economy is more stable now and the interest rate is controlled at 5.2%. In 1991 we felt like we were on the edge of a cliff and we don’t get the same sense of dynamics at play here. The challenges aren’t nearly as great as they were.”
The company said 83% of its clients expected trading conditions to be the same as or better than last year.
The report also referred to TRI’s Hot Stats, which predicted that revenue per available room in the UK will increase 3.5% this year in London and 5.5% in 2009.
Moore also said that Colliers prediction for the 2008 market is strong and will see no difference between 2007 and 2008.
Last week property company Christie & Co said it expected hospitality business values to cool rather than crash this year.
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