London hotels suffer as guests head for the hills

London hotels have been worst hit in Britain by the slump in business following the US terrorist attacks, with bookings plummeting by as much as 40%.

Industry observers have reported a shift in business to provincial properties, which have picked up bookings from customers wanting to avoid the UK's larger cities.

"During the foot-and-mouth crisis everyone kept out of the country, but now everyone wants to get into the country," said Peter Crome, managing director of leading country house hotel Chewton Glen.

However, he admitted that the 53-bedroom New Forest hotel had suffered its biggest downturn among corporate clients, which had hit midweek occupancies.

"October is looking quiet, and we could be looking at a 30% drop in demand," he said.

• Hilton International has changed its cancellation policy to try to keep hold of guests wanting to postpone visits.

Source: Caterer & Hotelkeeper magazine, 27 September - 3 October 2001