THE Hilton hotel in Liverpool One will not engage in a price war when it opens in October, its general manager has said.

Marcus Magee, who has been managing hotels for Stakis and Hilton for 20 years, is instead preparing for a battle on quality and service as the city adjusts to the explosion in hotel capacity in the last three years.

There were 2,800 hotel rooms in 2006, but since then the growth has been significant. Another 800 rooms have since been added and another 700 – including Hilton Liverpool’s 215 – are currently being built, while a further 1,700 rooms could be added at hotels which are being planned for the city centre.

The latest hotel data from business advisors Deloitte has shown this increase, combined with the recession and the comparison against the Capital of Culture year, is hitting room revenues in the city’s hotels.

From January to May 20, revpar – revenue per available room – fell 23% on weekdays, to £43, and 15% at weekends, to £60. The falls were respectively six and eight percentage points greater than the average for regional UK cities.

But Mr Magee is not going to look to undercut the competition when the hotel launches in four months.

“It’s about cohesion and working together – we don’t want to get into a price war,” he said.

“It will take time to build the business. As long as we have the right product, team and strategy, we will make money.”

Last month, the city was ranked 86th out of 300 global destinations as a conference venue by the International Congress and Convention Association and is targeting a place in the top 50 by 2012.

“The key element is that, as a city, we are raising the profile as a convention venue,” he added.

The 11-storey hotel in Liverpool, which will employ 120 full-time and 50 part-time staff, has been planned for more than four years, although Hilton had been targeting the city for some time before then.

Mr Magee said: “Hilton had always looked at Liverpool as a major link in the chain in northern England.

“They were looking for the right place and the right time.

“It’s a very good time for Hilton to come to the city. And Hilton coming is good for the city as well.”