Business and Tax Advice for Hotels

The Hotel sector is often a good barometer of the economic direction of the country and in recent weeks, two reports have given encouraging news both globally and locally. It has been reported by Hogg Robinson Group that the European Hotel market in the first half of 2010 appears to be stabilising with rates flat or only marginally down. Far more encouraging than the Middle East which has experienced double digit falls in most markets.

Stockholm was best performing European city with a growth rate of 13%, though it remains one of five European cities in the top ten most expensive cities worldwide list, along with Geneva, Paris, Zurich and Oslo. Closer to home, London saw a 1%rise in the first half of 2010, having fallen 4% during 2009. Without a doubt, the weak pound will be fuelling some of the recovery, as will the early signs of a turnaround in the banking sector, which will drive corporate demand.

Away from London, business advisory firm Deloitte reports that Hotel occupancy in the UK regions has also increased in the first half of 2010, after two very disappointing years. The report shows that Regional occupancy was 65.8% for the first half of 2010, up 4.2% (London 78.9% up 2.1%). However most experts seem to think that regional recovery is more fragile than that of London and the major tourist cities – Edinburgh, Oxford, Cardiff and the like.

The regions are likely to be far more sensitive to national influences and the corporate and meetings market is still slow, even though holidaying in the UK has seen upturns in occupancy connected to the leisure market. All this confirms that taking the best business advice, not to mention the best tax advice, as a hotelier, has never been more important to ensure that individual businesses stay on the right side of the statistics.

Ashworth Treasure works with Hotels in Lytham, Lancashire and further afield across the North West of England. Our work across many different business sectors gives us a good handle on the mood of North West business and the direction of the North West’s economy. Add this to our expertise in the Hotel Business Sector itself, and if you don’t know us already, you might want to give us a call.