Notes to Editors: - Hotel Designs

UK Hotel Market Remains BuoyantThe UK hotel market remained buoyant in February, according to the preliminary monthlyfigures for February released today by PKF Hotel Consultancy Services. As in January, theincreases were mainly down to increases in room rate, but occupancy rates also fared well.In London, growth continued apace with room rate rising by 5.8% on 2007 from £123.42 to£130.61. With occupancy remaining static at 77.7%, the overall growth in rooms yield saw arise from £95.92 last year to £101.45 this year.In the regions, there was consistent growth with rooms yield rising 2.3% from £49.50 last yearto £50.66 this year. This was a result of a 3.1% growth in room rate and a 0.5% drop in roomoccupancy – from 69.6% in 2007 to 69.1% in 2008.European Capital of Culture, Liverpool, had another fantastic month with a 15.2% rise in roomsyield from £50.15 in 2007 to £57.79 in 2008. This was attributable to a 10.2% increase in roomrate and a 4.5% increase in occupancy. Capitalising on its status, the city has organised variousevents every month and in February there was a Chinese New Year celebration plus a series ofother exhibitions, events and concerts.While Cardiff had a busy month with the Six Nations Rugby which started on the 2 nd February,overall it recorded a 2.2% drop year on year in rooms yield – from £50.23 in 2007 to £49.11 in2008. Occupancy was healthy, rising 3.8% on last year, but room rate dropped by 5.8% from£71.40 last year to £67.26 this year. The lower room rate and the Six Nations were probablywhy occupancy was high, but overall the low room rate meant rooms yield dropped.Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “February wasanother steady month for UK hotels and so far, it seems there is no discouragement for UKhoteliers despite the turmoil in the financial markets since the credit crunch.“It’s true that 2008 is likely to be slower than 2007, but this is due not just to the globaleconomic conditions, but also the fact that UK hotels have experienced a healthy period ofgrowth over the last couple of years which is now starting to stabilise.”Preliminary data for February 2008Rooms department 2008 2007 % changeUK Regional hotels (602)Average daily room rate per £73.30 £71.09 3.1occupied roomAverage daily room occupancy 69.1% 69.6% -0.5Average daily rooms yield per £50.66 £49.50 2.3available roomApproximate number of rooms 81,700 79,500per dayLondon hotels (185)

Average daily room rate per £130.6 £123.4 5.8occupied room1 2Average daily room occupancy 77.7% 77.7% 0.0Average daily rooms yield per £101.4 £95.92 5.8available room5Approximate number of roomsper day38,700 37,250– ends –For further informationJason Gowar PR Manager, PKF 020 7065 0573Jane Murray PR Executive, PKF 020 7065 0135Notes to Editors:1. PKF is a leading firm of accountants and business advisers with more than 1,800partners and staff operating in 23 offices in the UK mainland firm, a wholly-owned financialplanning company and associated offshore practices. The firm specialises in advising growingand entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also hasextensive experience in the public and not-for-profit sectors. Principal services includeassurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporatefinance and forensic. The firm has particular expertise in advising sectors such as hotels andleisure; mining and resource; public sector; real estate and construction; professional practices;not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.2. PKF (UK) LLP is a member of PKF International which is an association of legallyindependent firms with more than 14,650 people operating in 119 countries around the world.3. PKF has been providing hotel consultancy services since the early 1970s and, in thattime, has undertaken thousands of assignments throughout Europe, the Middle East and Africaand further a field. Services include: market evaluation and financial feasibility studies;operational and profit improvement reviews; asset management; business valuations;international property services; corporate strategy and planning; litigation support. PKF’s website features regular articles from the firm’s hotel consultancy services experts on industrytopics – the address is www.pkf.co.uk/hotelcons.4. PKF’s hotel trends surveys feature a broad range of hotels across the country althoughmainly in the 3 – 4 star categories and featuring rather more chain operated hotels than thoseoperated independently. While there are a fair number of hotels in country and rural areas,there is a predominance of hotels in towns and cities. In London, supply featured is mainly inthe 3 –5 star categories.5. Final data for January 2008Rooms department 2008 2007 % changeUK Regional hotels 642 642Average daily room rate per £71.4 £68.69 4.0occupied room1Average daily occupancy 59.6% 60.4% -1.3Average daily rooms yield per £42.58 £41.50 2.6

available roomApproximate number of rooms 89,500 88,300per day202 202London hotelsAverage daily room rate per £124. £118.2 5.1occupied room23 1Average daily room occupancy 71.0% 71.9% -1.4Average daily rooms yield per £88.15 £85.07 3.6available roomApproximate number of roomsper day43,300 43,3506. Definition of the key terms used in the surveys table are given below:7. Room occupancy: the ratio of total occupied rooms to total available rooms8. Average achieved room rate (AARR): rooms revenue divided by the total number ofguest rooms occupied during the year.9. Rooms yield: room occupancy multiplied by the average achieved room rate (alsoknown as RevPar).