UK hoteliers are set to enter a "critical period" this autumn as the industry faces a drop off in summer leisure spend that has helped businesses to offset a fall in corporate bookings.

According to Richard Hathway, KPMG's head of travel, leisure and tourism, the professional services firm is expecting an increase in insolvencies as operators struggle with declining room rates and conference and meeting bookings. Hathaway said: "Many will find that their traditionally strong autumn and Christmas revenues from business travel, conferences and events will not materialise this year, and as a result, businesses will remain under severe pressure for the foreseeable future."

However, Deloitte's Hotel Market Outlook has revealed that prospects for 2010 is more positive for the sector, with regional hotels across the UK set to show signs of RevPAR growth of more than 5 per cent by the end of next year. London hotels could continue to report decreases in RevPAR until the fourth quarter of 2010, although Marvin Rust, hospitality managing partner at Deloitte, believes the industry is now over the worst.

Rust said: "The revised forecasts show that for hotels in London and across the UK, the worst falls in RevPAR are probably behind us now. However, both sectors still face further falls in revenue before recovery takes place." Predictions for the short-term future of the sector come as new research from PKF Hotel Consultancy Services reported further decreases in occupancy and RevPAR during August 2009, compared with the same period last year.

According to PKF, room yield in London saw a 9.2 per cent decline to £44.10, while regional hotels reported a 11 per cent drop in room yield; also to £44.10. Occupancy also fell by 3.3 per cent and 3 per cent in London and regional hotels respectively.