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. Read More

UK Hospitality Industry Market Size

Market Size of UK Hospitality Industry

United Kingdom Hospitality Market Summary

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

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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 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 Industry Size Summary

The UK Hospitality Industry, encompassing hotels, restaurants, pubs, bars, and catering services, is a sizable sector and a significant driver of the nation's economy. The industry is expected to experience growth, with an increase in investments and positive fundamental performance indicators. Despite uncertainties brought about by Brexit, the growing demand for new hotels, particularly in London, continues to attract investors. The rise in serviced apartments and shared spaces also contributes to making the UK, especially London, an affordable destination for younger generations. Key trends in the UK Hospitality Market include growing RevPAR numbers and the role of London as a major tourist destination. The revenue per available room (RevPAR) is a critical metric in the hotel industry, and the influx of tourists to the UK drives up demand for accommodation, leading to higher occupancy rates and room rates, which in turn increases RevPAR. The growth of the economy and high disposable incomes domestically and internationally have also boosted demand for hotel rooms and other hospitality services. Furthermore, the industry is fragmented with many players, including domestic and international brands, all contributing to a highly competitive market.

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