4 APRIL 2011


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Article from BTNews 4 APRIL 2011

Budget hotel market grows in the UK

Since 2008, the UK budget hotel market has grown by 35%, adding 20,000 rooms and is now set to squeeze out independent and mid-market brands by 2030.  These are the findings of a new study into the hotel market by Melvin Gold Consulting that looks at future trends within the hotel industry.  In spite of the economic downturn in the last three years the UK branded budget hotel sector has thrived and supply has grown by 35%.  Market share has accelerated from 12% (end of 2007) to 16% of rooms in the UK serviced accommodation sector.

This increase has been dominated by Travelodge, the fastest growing UK budget hotel brand, and Premier Inn.  Both groups opened hundreds of new hotels across the UK via new developments, acquisitions and conversions of run-down independent and mid-market hotels.  Findings revealed the total number of serviced rooms in the UK at present stands at 729,000.  By 2030 this should reach 830,000.

The UK, with 6% share, remains a growing market for branded budget accommodation.  However it is well behind mature markets such as the USA (33%) and France (25%).  

The report also reveals that currently 40% of UK hotel accommodation supply is branded, leaving 60% unbranded and independent.  Consolidation is anticipated. www.melvingoldconsulting.com

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