PricewaterhouseCoopers: Continued Strong Hotel Performance in UK Throughout 2000

The UK GDP is forecast to grow by 3.2 percent in 2000, reflecting the benefits from strong economic growth in the European Union, Asia and the United States. The GDP growth will slow to 2.5 percent in 2001.

The continuing UK GDP growth is expected to boost UK hotel RevPAR (Revenue Per Available Room) by 5.1 percent in both 2000 and 2001. The main driver of RevPAR growth will continue to be average room rates, which PricewaterhouseCoopers is now forecasting to increase by 3.6 percent in 2000 to just over 76 pounds with a further 4.4 percent growth in 2001, bringing the rate to just below 80 pounds.

Occupancy levels should reach 76.2 percent in 2000 and 76.7 percent in 2001. This equates to growth of 1.5 percent and 0.7 percent in 2000 and 2001, respectively.

"We feel even more optimistic than we did six months ago about the UK lodging market," said Daniel Larkin, European leader and Hospitality & Leisure advisory. "The increases in GDP, together with relatively stable inflation support demand growth in the UK market."

PricewaterhouseCoopers is the industry's leader in providing reliable lodging forecasts in the United States that offer true industry-wide samples based on solid econometric models. The group predicted every lodging industry turning point in North America in the last ten years.

PricewaterhouseCoopers Hospitality and Leisure Group provides services including management, technology, human resources and financial consulting in North America, Europe, the Middle East, Africa and Asia. PricewaterhouseCoopers acquired PKF Consulting Ltd. (Asia/Pacific) on July 26, 1999. The acquisition places PricewaterhouseCoopers in a leading position in the Asia market. The group also recently formed a partnership with Smith Travel Research, and introduced lodging market summaries across Europe and Asia beginning in April.

All of PricewaterhouseCoopers research is available on LodgingResearch.com

PricewaterhouseCoopers (www.pwcglobal.com) is the world's largest professional services organisation. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world.

PricewaterhouseCoopers refers to the member firms of the worldwide PricewaterhouseCoopers organisation.