According to property agent Christie & Co, the UK hotel sector will have a “big year” in 2004 in terms of mergers and acquisitions while increased rationalisation of corporate stock should ease the lack of supply that dominated the sector in 2003.

Speaking at Christie & Co’s Business Outlook 2004 launch, managing director, Chris Day, also predicted that hotel groups such as Hilton, Intercontinental, Groupe Envergure and Accor would each be putting up several hotel sites for sale that didn’t fit with their portfolios.

Hotel companies will continue to move away from owning properties, with operating agreements to be favoured instead, said Day.

He also predicts that hotel developments in 2004 will be focused on boutique and budget hotels, while smaller hotel companies will hope to emulate the success of niche groups such as Hotel du Vin.

Excluding external worldwide events, he concluded that property values would increase by double digits in 2004, following on from last year’s 11.5 per cent growth rate. Details: www.christie.com