HOTELMARKETING.COM

Hotels look to a boom without the frills

July 22, 2008 | Hospitality Industry

The beauty of budget hotels is predictability. An advance booking costing around £30 buys a night in a small, clean room and a high degree of anonymit, writes the Financial Times.

Pity the status-conscious executive reduced by the downturn to staying in budget hotels. No attentive bellhop grabs his case as he checks in - he must lug his own luggage. Next morning, he is elbowed at the self-service breakfast bar by tradesmen and sales reps. When he leaves, he takes away no souvenirs in the form of towels, bathrobes or shampoo. There was simply nothing in his tiny room worth pinching.

You will agree it is a pitiable tableau, worthy of a charitable appeal in the pages of Management Today . Yet it will be played out ever more frequently across the country as the slowdown deepens. Travelodge, the second-largest budget chain, has devised recession-themed adverts targeted at beady-eyed finance directors. It boasts that a Big Four bank has restricted travelling staff to staying in its 340 hotels. Large employers who simplify hotel room procurement this way save money on administration as well as charges, and gain deferred payment terms to boot.

Budget chains are snapping up sites whose viability as office developments has evaporated with the popping of the property bubble. They are pondering the opportunities that stalled house building schemes represent too.

Get the full story at the Financial Times

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