| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 58.84 Billion |
| Market Size (2030) | USD 66.67 Billion |
| CAGR (2025 - 2030) | 2.53 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Kingdom Hospitality Market Analysis
The UK Hospitality Industry is expected to grow from USD 58.84 billion in 2025 to USD 66.67 billion by 2030, at a CAGR of 2.53% during the forecast period (2025-2030).
The hospitality industry in the United Kingdom is a substantial sector that includes hotels, restaurants, pubs, bars, and catering services. It is a crucial driver of the country's economy, providing employment to millions and significantly contributing to the GDP. There was an increase in investments in the hospitality industry, accompanied by positive fundamental performance indicators.
London alone has slightly higher overall critical performance indicators than the rest of the country. The demand for new hotels is expected to rise, particularly in London, due to increased travelers to the United Kingdom. Despite Brexit uncertainties impacting the investment environment, the growing demand attracts investors to the country.
There has been a noticeable increase in the number of serviced apartments and shared spaces, making the United Kingdom, especially London, an affordable destination for millennials and younger generations.
United Kingdom Hospitality Market Trends
The Hospitality Industry is Generating Growing RevPAR Numbers
The revenue per available room (RevPAR) is a critical metric in the hotel industry that indicates the average revenue generated per room, taking into account both occupancy and room rates. The United Kingdom is popular, attracting millions yearly with its rich history, vibrant culture, tourist destination, and diverse attractions. This influx of tourists drives up demand for accommodation, leading to higher occupancy rates and room rates, which increases RevPAR. The monthly occupancy rate in the United Kingdom stood at 81% as of September 2022. This figure shows an increase compared to the same month in the preceding two years.
Another driver is the economy's growth and high disposable incomes domestically and internationally. The increased leisure and business travel has boosted demand for hotel rooms and other hospitality services.
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London as a Tourist Destination is Driving the Market
Travel and tourism are crucial to the United Kingdom's economy, significantly contributing to the GDP and creating employment opportunities. The country is a favored destination for tourists globally, who are enticed by its rich history, diverse culture, stunning landscapes, and iconic landmarks. London, the capital city, is a significant tourist attraction, boasting world-class attractions such as the Buckingham Palace, British Museum, and the Tower of London. Other famous destinations in the country include Edinburgh, known for its historic architecture and vibrant arts scene, and the Lake District, celebrated for its breathtaking natural beauty.
In recent years, there has been a growing focus on sustainable tourism in the United Kingdom, with efforts to promote responsible travel practices and minimize the environmental impact of tourism activities.
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United Kingdom Hospitality Industry Overview
The market is fragmented with the presence of many players. The industry is a combination of domestic and international brands that share high competition. Their strategies include partnership approaches with government bodies, training stakeholders, and industry bodies to enhance workforce skills and efficiency. The key players include the Whitbread Group, InterContinental Hotels Group, Travelodge, Accor SA, and Marriott International Inc.
United Kingdom Hospitality Market Leaders
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Whitbread Group
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InterContinental Hotels Group
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Travelodge
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Accor SA
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Marriott International, Inc
- *Disclaimer: Major Players sorted in no particular order
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United Kingdom Hospitality Market News
- September 2023: Whitbread PLC, the owner and operator of the Premier Inn and Hub by Premier Inn brands, purchased the freehold interest of an 89,722-square-foot office building in London, with plans to convert it into a Premier Inn hotel.
- August 2022: Cynergy Bank extended a EUR 3.5 million (USD 3.78 million) loan to the Stay Original Company to facilitate the acquisition of its sixth property in Somerset.
United Kingdom Hospitality Industry Segmentation
The hospitality industry includes businesses that provide services to guests and travelers. This sector includes lodging (hotels and resorts), food and beverage services, event planning, theme parks, transportation, and other related services. The hospitality industry in the United Kingdom is segmented by type and segment. By type, the market is segmented into chain hotels and independent hotels. By segment, the market is segmented into luxury hotels, mid and upper-mid-scale hotels, budget and economy hotels, and service apartments. The report offers market sizing and forecasts in value (USD) 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 |
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UK Hospitality Market Research FAQs
How big is the UK Hospitality Industry?
The UK Hospitality Industry size is expected to reach USD 58.84 billion in 2025 and grow at a CAGR of 2.53% to reach USD 66.67 billion by 2030.
What is the current UK Hospitality Industry size?
In 2025, the UK Hospitality Industry size is expected to reach USD 58.84 billion.
Who are the key players in UK Hospitality Industry?
Whitbread Group, InterContinental Hotels Group, Travelodge, Accor SA and Marriott International, Inc are the major companies operating in the UK Hospitality Industry.
What years does this UK Hospitality Industry cover, and what was the market size in 2024?
In 2024, the UK Hospitality Industry size was estimated at USD 57.35 billion. The report covers the UK Hospitality Industry historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Hospitality Industry size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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UK Hospitality Industry Report
The UK hotel and restaurant sector is dynamic, with a blend of domestic and international brands contributing to high competition in the service industry. The tourism sector saw an increase in investments and positive performance values in 2024, particularly in London. The demand for new accommodation, especially hotels in London, is expected to rise due to an increase in travel to the UK. Despite Brexit uncertainty impacting the investment environment, the growing demand is attracting investors. The number of serviced apartments and shared spaces is also increasing, making the UK, particularly London, more affordable for millennials and younger generations. London's growing RevPAR is attracting more new projects and investors, with over 88 new hotel projects in the pipeline. Major players in the UK leisure and entertainment market include Whitbread Group, InterContinental Hotels Group, Travelodge, Accor SA, and Marriott International, Inc. For a more detailed understanding of key trends, a free PDF download of the sample report is available for any interested guest.
