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Hospitality Industry in the United Kingdom - Growth, Trends, and Forecasts (2020 - 2025)

  • ID: 5176622
  • Report
  • August 2020
  • Region: United Kingdom
  • 120 pages
  • Mordor Intelligence
The hospitality industry in the United Kingdom has become dynamic, with respect to the investment volumes recorded during the study period, owing to the uncertainty that surrounded by Brexit. The investments in the hospitality industry rose in 2018, 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 average room rate (ARR) for the United Kingdom was around GBP 87, whereas the same for London was around GBP 150 in 2018. The occupancy rate (OR) for the same year was 78.8% for the United Kingdom and 84% for London. The revenue per available room (RevPAR) of the United Kingdom was settled at GBP 67.5, whereas for London, it was at GBP 124, making London the biggest contributor to the overall industry. 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 the 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.

Key Market Trends

Even 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 29 million visitors in the United Kingdom in 2009, which stood at around 37.9 million in 2018. The United Kingdom recorded a constantly growing number of domestic travels till 2017. The Brexit uncertainty resulted in a drop in leisure travel across the country and affected the overall visitors' rate in the United Kingdom. The uncertainty also affected the total number of international travelers and resulted in a drop to the overall tourism number.

London‘s Image 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 2015-2018. The growing RevPAR is helping the city attract more new projects and investors.

Competitive Landscape

The hospitality industry in the United Kingdom is dynamic. The inustry is a combination of domestic and international brands that share high competition. The hospitality industry recorded growth numbers in 2018, both in terms of performance and investments. One of the largest deals of year was made by Starwood Capital. It sold its capital in 13 hotels in the old Principal Hayley Group to a French company Foncière des Régions (FDR), for GBP 858 million.

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Note: Product cover images may vary from those shown
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 Impact of COVID-19 on Hospitality Industry
4.4 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors
4.5 Leading Cities in the United Kingdom with Respect to Number of Visitors
4.6 Investments (Real Estate, FDI and others) in the Hospitality Industry
4.7 Technological Innovations in the Hospitality Industry
4.8 Insights on Shared Living Spaces Impact on the Hospitality Industry
4.9 Insights on Other Economic Contributors to the Hospitality Industry
4.10 Value Chain Analysis
4.11 Porter's Five Forces Analysis

5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Chain Hotels
5.1.2 Independent Hotels
5.2 By Segment
5.2.1 Service Apartments
5.2.2 Budget and Economy Hotels
5.2.3 Mid and Upper mid scale Hotels
5.2.4 Luxury Hotels

6 COMPETITVE INTELLIGENCE
6.1 Market Concentration
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
6.3 Loyalty programs offered by Major Hotel Brands

7 INVESTMENT ANALYSIS

8 FUTURE OUTLOOK OF THE SECTOR

9 APPENDIX
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