Colliers Robert Barry, the specialist hotels division of Colliers CRE, has published the latest edition of its Trading Places property magazine for the hotel industry.
Tougher times are affecting all aspects of the property market but so far hotels are fairing better than most although there is no denying the challenges that hoteliers face.
First the good news. Hotels are businesses that mainly derive their value from trading performance and industry statistics confirm that the hospitality trade remains stable for the moment. The strong Euro is working to UK hoteliers' advantage by encouraging more people to holiday in the UK.
The downside of tougher trading conditons will be felt in a number of areas. Costs are increasing so utilities, supplies and wages will take a larger share of the budget. Lifestyle purchases, where a new hotel business is funded by selling a residential property, will be particularly affected by the slowdown in the housing market. The introduction of new legislation, such as energy perfrmance certificates, and the availability and cost of finance are further negative factors that will affect the hotel industry.
Speculative valuations may be a thing of the past but Colliers Robert Barry predicts hotel sales in the current market will be achieved at realistic prices. So owners with well-managed trading accounts should feel secure in the value of their property, and it is now more important than ever to keep on top of costs.
Chris Moore, Head Of Hotels - Colliers Robert Barry comments:
"Private hoteliers have always been hard working and passionate business leaders and it is this efficiency and professionalism that will see them through the present economic difficulties.
"At Colliers Robert Barry a good proportion of our staff have worked through the downturns of the 1980s and 1990s and are well versed in the tactics the private hotel owner needs, not just to survive, but to succeed in a difficult market."
For more information contact our press office:
Natasha Sunderland Head of PR +44 20 7344 6641
Jacqueline Whitaker Associate Director +44 20 7344 6706