PricewaterhouseCoopers (PwC) has raised concerns that slow economic growth in the UK will "further compound the difficulties" for regional hoteliers heading into 2012.

In a "rule of thumb" analysis undertaken by PwC, it has been suggested every percentage point fall in gross domestic product (GDP) will lead to a similar drop in occupancy rates.

However, next year's Olympic Games, Diamond Jubilee and Farnborough Air Show could offset some of the impact of slow growth for those "in the right place at the right time".

PwC hospitality and leisure leader Robert Milburn said: "The regions have traditionally been more sensitive to changes in the UK economy than London, which is influenced more by international factors.

"With the Office for Budget Responsibility now forecasting economic growth in 2012 only half that envisaged earlier this year, we expect significantly lower RevPAR growth as a result."

Details: www.pwc.com

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