Property agent and consultant, CB Richard Ellis Hotels, has claimed that government proposals to deter or ban upward-only rent review clauses in commercial leases are a threat to new hotel developments.

Chris Rouse, senior director, speaking at a hotel development conference in London today (15 June), said that the proposals would require commercial and hotel property to be reassessed as an asset class.

“Hotels are a sophisticated sector of the property market and we do not believe there is any widespread problem associated with hotel tenants being badly advised,” said Rouse.

“One of the strengths of the UK hotel investment market is the sensible balance that can be achieved between the landlord and tenant’s interests. The UK has the most active property market in Europe – we cannot see how the introduction of new restrictions will encourage this highly dynamic market.

“The government increased stamp duty on commercial leases by up to 1,000 per cent last year, which itself acted as a brake on the market. The new proposals are another example of unwanted legislative interference contributing to unwelcome restraints on new development.” Details: www.cbrehotels.com