UK Hospitality Industry Market Size (2024 - 2029)

The market size of the UK Hospitality Industry, which encompasses hotels, restaurants, pubs, bars, and catering services, is expected to see growth in the coming years. This sector plays a vital role in driving the economy and providing employment opportunities. Despite uncertainties surrounding Brexit, the industry is attracting more investments due to positive performance indicators and an increase in demand for new hotels, particularly in London. The rise of serviced apartments and shared spaces has also contributed to making the UK an affordable destination, thus increasing the market size of the hospitality industry.

Market Size of UK Hospitality Industry

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United Kingdom Hospitality Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 57.39 Billion
Market Size (2029) USD 65.02 Billion
CAGR (2024 - 2029) 2.53 %
Market Concentration Medium

Major Players

United Kingdom Hospitality Market Major Players

*Disclaimer: Major Players sorted in no particular order

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United Kingdom Hospitality Market Analysis

The UK Hospitality Industry is expected to grow from USD 57.39 billion in 2024 to USD 65.02 billion by 2029, at a CAGR of 2.53% during the forecast period (2024-2029).

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 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

UK Hospitality Industry Size Summary

The UK Hospitality Industry, encompassing hotels, restaurants, pubs, bars, and catering services, is a sizable sector and a significant driver of the nation's economy. The industry is expected to experience growth, with an increase in investments and positive fundamental performance indicators. Despite uncertainties brought about by Brexit, the growing demand for new hotels, particularly in London, continues to attract investors. The rise in serviced apartments and shared spaces also contributes to making the UK, especially London, an affordable destination for younger generations. Key trends in the UK Hospitality Market include growing RevPAR numbers and the role of London as a major tourist destination. The revenue per available room (RevPAR) is a critical metric in the hotel industry, and the influx of tourists to the UK drives up demand for accommodation, leading to higher occupancy rates and room rates, which in turn increases RevPAR. The growth of the economy and high disposable incomes domestically and internationally have also boosted demand for hotel rooms and other hospitality services. Furthermore, the industry is fragmented with many players, including domestic and international brands, all contributing to a highly competitive market.

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UK Hospitality Industry Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Consistent Flow of Visitors Drives Demand for Accommodation

      2. 1.2.2 Popular Destination for Both Domestic and International Tourists

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Competition within the Industry

      2. 1.3.2 Regulations can be Costly and Time Consuming

    4. 1.4 Market Opportunities

      1. 1.4.1 Rise of Digital Technology Offers Opportunities for the Hospitality Industry

      2. 1.4.2 Increasing Demand for Unique and Personalized Experiences Among Travelers

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Technological Innovations in the Hospitality Industry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Chain Hotels

      2. 2.1.2 Independent Hotels

    2. 2.2 By Segment

      1. 2.2.1 Luxury Hotels

      2. 2.2.2 Mid and Upper-Mid-Scale Hotels

      3. 2.2.3 Budget and Economy Hotels

      4. 2.2.4 Service Apartments

UK Hospitality Industry Market Size FAQs

The UK Hospitality Industry size is expected to reach USD 57.39 billion in 2024 and grow at a CAGR of 2.53% to reach USD 65.02 billion by 2029.

In 2024, the UK Hospitality Industry size is expected to reach USD 57.39 billion.

Hospitality Industry in UK Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)