Latest News
Issue 37/ 36/ 35 : November 19th 2008
The economic challenge
The financial crisis is finally moving out of the headlines. Unfortunately, it is because of the developing economic gloom rather than any formal conclusion to the financial problems.
Hotel investors, already battered by the tighter credit conditions, now face the prospect of a long and deep recession.
Liquidity remains the issue
The prevailing orthodoxy about the current recession is that it will long and deep. This was only helped by news last week that UK property values fell by the biggest amount ever in a single month during October, an eye watering 4.3%.
But just as the boosters were wrong about asset prices always heading north, the doomsters may be just as wrong about how long the recession will last. Perhaps, by having such a sharp drop in values, a long, lingering decline can be avoided.
Sharp trading downturn in October
October has brought a sharp deterioration in trading for hotel operators with both InterContinental and Millennium & Copthorne reporting negative revpars in the month.
IHG said that global revpar in October was down 4.5% and down 5.7% in the US. M&C said revpar was down 3.0%.
Free Trial
Please sign me up for a free month's trial!
Subscription for:
* requiredDelivered to: |
|
| Address 1* | |
| Address 2* | |
| Address 3 | |
| Address 4 | |
| Postcode* | |
| Country* | |
|
Companies outside the UK but within the European Unionshould supply TVA/BTW/MOMS or equivalent number to avoid paying VAT (countries outside the UK and outside of the EU will not be charged VAT): |
|
|
|
|
By subscribing to Hotel Analyst you have agree to let us contact you about your subscription, its renewal and other commercial matters relating to your subscription. We will also hold your details for other promotional purposes. If you do not want your details to be passed to third parties please email us using this link. |
|