Hospitality Real Estate in UK Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Hospitality Real Estate in UK Market Analysis
The hospitality real estate sector in the United Kingdom is anticipated to register a CAGR of greater than 4% during the forecasted period.
- The growth of hospitality sector in UK is impacted primarily due to uncertainty over fluctuating economic trends and the pound strengthening which is dampening the business investment growth, and the impact of high levels of new hotel rooms that are going to be added, particularly in London and also in other UK cities.
- The coronavirus (COVID-19) pandemic has had an uneven impact on the hospitality industry; bars and clubs fared the worst, but campsites fared better than the rest of the sector. Consumer spending on hospitality began to rise in May 2021, but it is still less than 70% of pre-pandemic levels.
- Looking at the bright side the market is attracting leisure travel and tourism, as it continues to be supported by the weaker pound followed by the short-term tax cuts that were announced in the budget, accommodative lending terms, and low-interest rates. The buoyant international tourism trends, the record numbers of visitors that are coming to the UK, and the revenue that is generated through it are shaping the market.
- The study period showed mixed trends for business travel which is a quite profitable and vital segment of the hospitality real estate sector as the Brexit negotiations were at a constant pace for the entire period. Yet, despite the Brexit uncertainty many overseas investors continued to be active, especially investors from Europe and the Middle East, and continued with their confidence in the UK hospitality real estate market. In order the strengthen the pound and to stabilize the economy over Brexit, the taxes are forecasted not likely to turn upward soon.
- The market is also recording a growing number of expansions/extensions, refurbishments, and renovations and is contributing more than 15 percent to the new hotel supply, whereas the new constructions are forecasted to continue to form the majority of projects, making a greater of the overall supply.
Hospitality Real Estate in UK Market Trends
This section covers the major market trends shaping the UK Hospitality Real Estate Sector Market according to our research experts:
The Budget Friendly Hotel is Making a Way for Branded, Independent Midscale, and Upscale Hotels
Price is the most important factor to 47% of consumers when selecting accommodation. In the overall sector, the budget-friendly hotel sector continued to dominate the market, making year-on-year growth to date. However, this trend is likely to be slowed down a bit by the continuing rise of branded and independent midscale and upscale hotels, reflecting the apparent growing trend for lifestyle hotels and customers' preferences. The increasing affordability of people, and their desire to travel, and experience are shaping this trend and the hospitality real estate sector. The hotel sector continues to evolve to meet dynamically changing customer needs. Edinburgh, London, Brighton, York, and Birmingham, which is set to host the 2022 Commonwealth Games, are topping the list of most attractive cities in the country.
The pandemic has put a significant strain on travelers' finances. Despite this, travel demand remains high, and many people are desperate for a change of scenery. Travelers are more likely to forego the extras provided by mid- to upper-tier hotels in exchange for a more basic 'pay for what you need' service standard.' However, the pandemic has caused a shift in traveler sentiment that could impact this type of investment.
The Growing Number of Serviced Apartments is going to Shape the Market
The accommodation segment of the market is continuing to widen with innovative players that are entering the market and are changing the definitions of classic accommodation. In the new age of urbanization, changes in living-trends, co-living, and sharing experiences have resulted in the serviced apartments. The sector is adapting to the demands and expectations of the widening pool of customers. The serviced apartments and home share products are evolving and attracting a great number of travelers. Serviced apartments have gained huge popularity over time, with a growing acceptance of a homestay concept. The serviced apartment sector in the country has been the fastest-growing sub-sector since 2010. The sector has recorded an annual average growth of around 5%, and it is predicted to record a remarkable growth number during the forecast period as well.
Hospitality Real Estate in UK Industry Overview
The United Kingdom Hospitality Real Estate Market is quite fragmented with the presence of many local and international players. Some of the major market players are InterContinental Hotels Group PLC, Travelodge, Britannia Hotels,Choice Hotels International Inc., and LRC Group. The hospitality real estate sector in the United Kingdom offers various opportunities for investors. The sector here is a combination of global players and local players who have an international presence. Various tourism attractions that are present in the region are attracting a large number of tourists, thus encouraging the hospitality real estate sector as well.
Hospitality Real Estate in UK Market Leaders
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InterContinental Hotels Group PLC
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Travelodge
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Britannia Hotels
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Choice Hotels International Inc.
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LRC Group
*Disclaimer: Major Players sorted in no particular order
Hospitality Real Estate in UK Market News
- November 2022: InterContinental Hotels & Resorts announces the launch of 10 exclusive non-fungible tokens (NFTs) in collaboration with British contemporary artist Claire Luxton. A joint first for both, each NFT is inspired by the beauty of global travel using the natural flora and fauna signature of the artist's work to illustrate the brand's storied heritage and far-flung destinations.
- August 2022: Travelodge opens its first budget luxe hotel in Hexham and announces its North East hotel expansion program. Hexham Travelodge is the second hotel the group has opened in the North East region within the last seven months. In December 2021, the hotel chain opened the first budget hotel at Europe's biggest business park, Newcastle Cobalt Business Park.
Hospitality Real Estate in UK Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Insights into Technological Innovation in the Hospitality Real Estate Sector
4.4 Insights on Urban Commercial Property Prices and Recent Hospitality RE Transactions
4.5 Industry Value Chain Analysis
4.6 Porter's Five Forces Analysis
4.7 Impact of COVID -19 on the Market
5. MARKET SEGMENTATION
5.1 By Property Type
5.1.1 Hotels and Accommodations
5.1.2 Spas and Resorts
5.1.3 Other Property Types
6. COMPETITVE INTELLIGENCE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Premier Inn
6.2.2 InterContinental Hotels Group PLC
6.2.3 Travelodge
6.2.4 Accor SA
6.2.5 Hilton Hotels & Resorts
6.2.6 Britannia Hotels
6.2.7 Choice Hotels International Inc.
6.2.8 Covivio
6.2.9 London & Regional Properties
6.2.10 LRC Group
6.2.11 Vivion Capital Partners
6.2.12 Brookfield AM
6.2.13 Cola Holdings*
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OF THE SECTOR
9. APPENDIX
Hospitality Real Estate in UK Industry Segmentation
Hospitality real estate is property used to serve travelers both long-term and short-term for business and pleasure. There are a wide variety of hospitality properties that serve all types of travelers.
The Market is Segmented by Property Type (Hotels and Accommodations, Spas and Resorts, and Other Property Types). The report offers market size and forecast for Hospitality Real Estate Sector in the United Kingdom in value (USD billion) for all the above segments.
| By Property Type | |
| Hotels and Accommodations | |
| Spas and Resorts | |
| Other Property Types |
Hospitality Real Estate in UK Market Research FAQs
What is the current UK Hospitality Real Estate Sector Market size?
The UK Hospitality Real Estate Sector Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in UK Hospitality Real Estate Sector Market?
InterContinental Hotels Group PLC, Travelodge, Britannia Hotels, Choice Hotels International Inc. and LRC Group are the major companies operating in the UK Hospitality Real Estate Sector Market.
What years does this UK Hospitality Real Estate Sector Market cover?
The report covers the UK Hospitality Real Estate Sector Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Hospitality Real Estate Sector Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Hospitality Real Estate Sector Industry Report
Statistics for the 2024 UK Hospitality Real Estate Sector market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Hospitality Real Estate Sector analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
UK Hospitality Real Estate Sector Market Report Snapshots
