As travel budgets shrink, demand for low-cost accommodation continues to grow. Hotel companies are taking advantage of falling valuations to open budget properties in prime city centres locations. The recent opening of two Ibis properties in Belfast underlines this trend. The properties will be run by Andras House, a hospitality group which also manage Belfast's Ramada Hotel, Days Hotel and Express by Holiday Inn. Ibis is one of fourteen brands within Accor , a group which operates more than 4,000 hotels in 90 countries worldwide.
More generally, the traditional hotel model is likely to change to either low-cost or luxury. In such a scenario, three and four star hotels will have a tough time figuring out how to compete. For the ultimate example of a low-cost 'Ryanair' style hotel (no towels, no wardrobes etc.) and with rates from the equivalent of US$3 per night, Tune Hotels in Malaysia is worth a look.
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