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Hotel industry in the United Kingdom - Statistic & Facts

The UK’s hotel market is one of contrasts, ranging from renowned 5-star and luxury hotels, to major national budget brands. International and domestic tourism creates a demand for hotels and similar serviced accommodation establishments of all kinds, segmented across upper, mid, and lower scales. The upper and luxury segments are most prominent in London, where high tourist traffic and economic wealth provide a greater market for deluxe and first-class hotels. Budget-minded travelers on the other hand, increasingly turn to peer-to-peer platforms such as Airbnb for cheaper rates and the ‘home away from home’ experience. Although considered a disrupter, such platforms have yet to directly influence industry performance, other than increase opportunities for the serviced accommodation segments. The average hotel revenue per room in the UK now reaches over 100 British pounds.

The main indicators used to measure performance in the hotel industry are occupancy rates (of rooms or bed-places), average room rates (or ADR – average daily rate), and room yield, more commonly known as revenue per available room (RevPAR). The number of rooms and room supply are also of importance to developers looking to invest in new hotel properties. In the five years to 2019, hotel room occupancy was relatively stable in the UK, showing promising growth towards the end of the year. Achieved room rates also increased, resulting in higher revenue growth.

How does the London hotel market compare to regional cities?

Although London remains an attractive location for hotel development in Europe, the regional market in the UK still holds potential for investors. Manchester, one of the biggest cities in the north of England, attracted a standout investment compared to other regional cities in 2019.
The difference in hotels in tourist-centric London and the more economical offerings across the rest of the UK are reflected in their KPIs; The average room rate stands at around 150 British pounds in London, compared to 70 outside of the city, resulting in less comparable revenue figures. Occupancy however is relatively consistent in both divisions of the market.

What is the outlook for the hotel industry post-lockdown?

The impact of the coronavirus pandemic on global travel, and the subsequent closure of hotels during lockdown, naturally had implications for the industry. Forecasts from Statista’s Mobility Market Outlook predict a drop in revenues and users within the hotels segment in 2020, before recovering in the following years.

Interesting statistics

In the following 6 chapters, you will quickly find the 36 most important statistics relating to "Hotel industry in the United Kingdom (UK)".


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