| Falling hotel occupancy levels and room rates mean | | | | four new hotels across England and Scotland. They |
| that there is less income for hotel investors, many of | | | | are developing hotels in Portsmouth, Bradford, |
| which have financed these commercial properties | | | | Newcastle and Glasgow as part of their plan for |
| through high levels of borrowed debt. As a reaction to | | | | accelerated growth. They are hoping to take full |
| the adverse market conditions many hotels are now | | | | advantage of the trend for business users and British |
| offering rooms at highly discounted rates. The three | | | | tourists to stay in cheaper hotels and have also |
| and four star hotel market has been hit especially hard | | | | secured several lucrative commercial property deals |
| and they have had to heavily discount their room rates | | | | that before the credit crunch simply were not feasible |
| in order to remain competitive. Holiday Inn / Holiday | | | | or available to them. |
| Express have implemented a credit crunch action plan | | | | Despite the overall economic downward trend in the |
| which includes lowering their rates to around £21 pp | | | | UK there have been nationwide sales increases for |
| in the UK, increased promotions and marketing to their | | | | budget and cut cost retailers and service providers, |
| customers and target audience, and asking suppliers | | | | whether they provide food, clothing or leisure breaks. |
| for either better terms or lower costs so that they can | | | | The UK consumer products and commercial market is |
| continue to remain competitive within the hotel | | | | becoming increasingly buyer led. Consumers are finding |
| commercial property industry. | | | | that there are great offers available to them either |
| Budget hotels are not completely recession proof | | | | through heavy discounting of high end brands or |
| either and companies such as Travelodge have | | | | through taking full advantage of budget products and |
| experienced a fall in business stays and leisure at the | | | | services that are also offering promotional pricing and |
| weekends. However, despite these slight declines they | | | | offer based marketing to their customers. Travelodge |
| are taking full advantage of the credit crunch’s | | | | and Jury’s Inn are taking full advantage of this trend |
| effects on the commercial property market and have | | | | and are setting themselves up for long-term growth |
| purchased several great value real estate deals that | | | | with new commercial properties and increased |
| before the recession would have been unavailable to | | | | customers. |
| them. | | | | Despite the overall decline in the UK hotel market cash |
| Budget hotel chain Jury's Inn are also taking full | | | | rich buyers will find that over the next couple of years |
| advantage of the increasing demand for budget hotel | | | | there will be some great hotel commercial property |
| accommodation that has been created by the | | | | investment opportunities available to them. |
| recession and are spending £90 million on opening | | | | |