UK Hospitality Market Size
| Study Period | 2019- 2028 |
| Base Year For Estimation | 2022 |
| Market Size (2023) | USD 24.20 Billion |
| Market Size (2028) | USD 27.42 Billion |
| CAGR (2023 - 2028) | 2.53 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UK Hospitality Market Analysis
The UK Hospitality Industry is estimated at USD 24.20 billion in 2023, and is expected to reach USD 27.42 billion by 2028, growing at a CAGR of 2.53% during the forecast period (2023-2028).
According to statistics given by many research organizations, the UK's hotel industry is one of the economy's worst-hit sectors during the COVID-19 pandemic and saw a significant contraction in April–June 2020. Due to the second wave, the domestic hospitality sector, which COVID-19-related disruptions have badly impacted, also experienced a significant fall in 2021.
Investments in the hospitality industry rose in 2021, and the industry also recorded positive key performance values. The overall key performers recorded in London city alone are slightly higher than the overall performance recorded by the country.
The demand for new hotels is expected to increase in the forecast period, especially in London, owing to the increasing number of travelers to the United Kingdom. The impact of Brexit uncertainty is affecting the investment environment, yet the growing demand is helping the country attract investors.
The number of serviced apartments and shared spaces is increasing in the country, and this is making the country, especially London, an affordable place for many millennials and the younger generations.
UK Hospitality Market Trends
This section covers the major market trends shaping the UK Hospitality Market according to our research experts:
With the Dynamic Tourist Arrivals Rate in the United Kingdom, the Hospitality Industry is Generating Growing RevPAR Numbers
The total number of tourist arrivals in the United Kingdom are fluctuating. Domestic travel recorded around a few million visitors in the United Kingdom in 2021. The United Kingdom recorded a constantly growing number of domestic travelers till 2021.
The Brexit uncertainty resulted in a drop in leisure travel across the country and affected the overall visitor rate in the United Kingdom. The uncertainty also affected the total number of international travelers and resulted in a drop in the overall tourism number.
London as Tourist Destination is Driving the Market
There are more than 88 new hotel projects in the construction pipeline in London, and more than 16,000 rooms are expected to be added to the supply. The pipeline has international brands and domestic brands that are targeting the luxury segment of the industry. London is registering a growing RevPAR year-on-year, though the occupancy got stagnated between around 80-84% during 2018-2022. The growing RevPAR is helping the city attract more new projects and investors.
UK Hospitality Industry Overview
The hospitality industry in the United Kingdom is dynamic. The industry is a combination of domestic and international brands that share high competition. The hospitality industry recorded growth numbers in 2021, both in terms of performance and investments. Moreover, the market is expected to grow during the forecast period. Companies including Whitbread Group, InterContinental Hotels Group, Travelodge, Accor SA, and Marriott International, Inc., among others have been profiled in the report.
UK Hospitality Market Leaders
Whitbread Group
InterContinental Hotels Group
Travelodge
Accor SA
Marriott International, Inc
*Disclaimer: Major Players sorted in no particular order
UK Hospitality Market News
- Aug 2022: Stay Original to acquire the sixth property in the UK. Cynergy Bank has completed a GBP 3.5 million loan to Stay Original Company to fund the acquisition of a sixth site in Somerset.
- July 2022: Mews the leading hospitality cloud, has formally launched Mews Ventures, the new investment arm of the business. The Mews M&A team (mergers and acquisitions) has been operating since 2018.
UK Hospitality Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Restraints
4.3 Market Drivers
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Technological Innovations in the Hospitality Industry
4.6 Impact of COVID-19 on Hospitality Industry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Chain Hotels
5.1.2 Independent Hotels
5.2 By Segment
5.2.1 Luxury Hotels
5.2.2 Mid and Upper Mid Scale Hotels
5.2.3 Budget and Economy Hotels
5.2.4 Service Apartments
6. COMPETITVE INTELLIGENCE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Whitbread Group
6.2.2 InterContinental Hotels Group
6.2.3 Travelodge
6.2.4 Accor SA
6.2.5 Hilton Worldwide
6.2.6 Marriott International, Inc
6.2.7 Best Western Hotels and Resorts
6.2.8 Carlson Rezidor
6.2.9 Britannia Hotels
6.2.10 Wyndham Hotels and Resorts*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
UK Hospitality Industry Segmentation
Among the many industries that make up the service sector's hospitality sector, hotels, food and beverage service, event organizing, theme parks, travel, and tourism play a major role. It contains lodging facilities, travel businesses, eateries, and bars. A complete background analysis of the hospitality industry in the United Kingdom, which includes an assessment of the industry associations, overall economy, emerging market trends by segments, and significant changes in the market dynamics and the market overview, is covered in the report. The Market is Segmented by type (Chain Hotels and Independent Hotels), and by segment (Luxury Hotels, Mid, and Upper Mid-scale Hotels, Budget and Economy Hotels, and Service Apartments). The report offers market size and forecasts for the hospitality industry in the United Kingdom in value (USD Billion) for all the above segments.
| By Type | |
| Chain Hotels | |
| Independent Hotels |
| By Segment | |
| Luxury Hotels | |
| Mid and Upper Mid Scale Hotels | |
| Budget and Economy Hotels | |
| Service Apartments |
UK Hospitality Market Research FAQs
How big is the UK Hospitality Market?
The UK Hospitality Market size is expected to reach USD 24.20 billion in 2023 and grow at a CAGR of 2.53% to reach USD 27.42 billion by 2028.
What is the current UK Hospitality Market size?
In 2023, the UK Hospitality Market size is expected to reach USD 24.20 billion.
Who are the key players in UK Hospitality Market?
Whitbread Group, InterContinental Hotels Group, Travelodge, Accor SA and Marriott International, Inc are the major companies operating in the UK Hospitality Market.
UK Hospitality Industry Report
The UK hotel and restaurant sector is dynamic, with a blend of domestic and international brands contributing to high competition in the service industry. The tourism sector saw an increase in investments and positive performance values in 2021, particularly in London. The demand for new accommodation, especially hotels in London, is expected to rise due to an increase in travel to the UK. Despite Brexit uncertainty impacting the investment environment, the growing demand is attracting investors. The number of serviced apartments and shared spaces is also increasing, making the UK, particularly London, more affordable for millennials and younger generations. London's growing RevPAR is attracting more new projects and investors, with over 88 new hotel projects in the pipeline. Major players in the UK leisure and entertainment market include Whitbread Group, InterContinental Hotels Group, Travelodge, Accor SA, and Marriott International, Inc. For a more detailed understanding of key trends, a free PDF download of the sample report is available for any interested guest.
