Property group Marylebone Warwick Balfour (MWB) has reported a "softening in room rates" due to a fall in of corporate demand at its boutique hotels Malmaison and Hotel du Vin.

In its interim management statement, for the period from 1 July 2008 to 1 October 2008, the company said: "In line with market movement, we anticipate a slowing down in the rate of growth in the future as the corporate market softens."

MWB added that all three of its divisions continue to perform in line with the board's expectations and its hotels are maintaining occupancy levels in spite of continuing difficult market conditions.

The hotel group's 23-strong portfolio will gain a further three hotels by 2009 in Newcastle, Edinburgh and Aberdeen.

Earlier this year MWB acquired the renowned St Andrews Golf Hotel on The Scores overlooking St Andrews Bay in Scotland for an undisclosed sum and opened its 23rd hotel in Poole, in September.