United Kingdom Hospitality Market Size, Share, and COVID-19 Impact Analysis, By Type (Chain Hotels and Independent Hotels), By Segment (Luxury Hotels, Mid & Upper-Mid-Scale Hotels, Budget & Economy Hotels, and Service Apartments), and United Kingdom Hospitality Market Insights, Industry Trend, Forecasts to 2033

United Kingdom Hospitality Market Insights Forecasts to 2033

• The United Kingdom Hospitality Market Size was valued at USD 55.97 Billion in 2023.
• The United Kingdom Hospitality Market is Growing at a CAGR of 2.47% during the forecast period 2023 to 2033
• The United Kingdom Hospitality Market Size is Anticipated to Reach USD 71.45 Billion by 2033

The United Kingdom Hospitality Market is Anticipated to Exceed USD 71.45 Billion by 2033, Growing at a CAGR of 2.47% from 2023 to 2033. The rising disposable incomes, urbanization, and Expending tourism infrastructure are driving the Growth of the hospitality market in the UK.     

Market Overview

The hospitality market refers to the market in which businesses provide lodging, food & beverage services, and related recreational and entertainment activities, primarily for leisure and tourism purposes. Hospitality is the friendly and generous reception and treatment of guests or visitors, encompassing the act of welcoming and entertaining guests, ensuring they feel comfortable and cared. Travel and tourism and evolving guest preferences, along growing technological advancements are driving the hospitality market. Further, the increasing demand for hotel rooms and other hospitality services due to the rise in leisure and business travel significantly contributes to propelling the market growth for hospitality. Further, personalized guest experiences, contactless technologies, and sustainable practices in the hospitality industry are offering growth opportunities in the hospitality market. The increasing demand for unique and personalized experiences among travellers, along with the rise of digital technologies, is providing lucrative growth opportunities in the hospitality market.

Report Coverage

This research report categorizes the market for the UK hospitality market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom hospitality market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the UK hospitality market.

Driving Factors

The rising disposable incomes are responsible for driving the market for hospitality as increased incomes allow individuals to allocate more funds towards leisure travel, accommodation, and dining. Further, the urbanization driving demand for accommodation, dining, and entertainment leads to drive market demand for hospitality. The increasing emphasis on providing accommodations and services to tourists, along with expanding tourism infrastructure contributing to propelling the hospitality market demand.

Restraining Factors

The increased competition, as well as costly & time-consuming regulations, are restraining the market growth of hospitality. Further, the economic instability, talent shortages, evolving guest expectations, and emergence of alternative accommodation options are several factors that are challenging the market.

Market Segmentation

The United Kingdom Hospitality Market share is classified into type and segment.

• independent hotels segment dominates the market with the largest market share in 2023 and is expected to grow at a significant CAGR during the projected period.

The United Kingdom hospitality market is segmented by type into chain hotels and independent hotels. Among these, the independent hotels segment dominates the market with the largest market share in 2023 and is expected to grow at a significant CAGR during the projected period. Independent hotels are privately owned and operated, offering guests a distinct experience reflecting the individuality and character of the establishment.

• The mid & upper-mid-scale hotels segment dominates the market with a major market share and is expected to grow at a significant CAGR during the projected period.

The United Kingdom hospitality market is segmented by segment into luxury hotels, mid & upper-mid-scale hotels, budget & economy hotels, and service apartments. Among these, the mid & upper-mid-scale hotels segment dominates the market with a major market share and is expected to grow at a significant CAGR during the projected period. Mid & upper mid-scale hotels cater to both business and leisure travellers who seek quality accommodations at reasonable prices.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the U.K. hospitality market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Whitbread Group
• InterContinental Hotels Group
• Travelodge
• Accor SA
• Hilton Worldwide
• Marriott International Inc.
• Best Western Hotels and Resorts
• Carlson Rezidor
• Britannia Hotels
• Wyndham Hotels and Resorts
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In September 2023, Whitbread’s Premier Inn acquired a £56.5 million city of London office conversion. Whitbread PLC, the owner and operator of the Premier Inn and Hub by Premier Inn Brands, has acquired the freehold interest of an 89,722 square foot office building in London that it intends to convert into a Premier Inn hotel.

Market Segment

This study forecasts revenue at U.K., regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Hospitality Market based on the below-mentioned segments:

UK Hospitality Market, By Type

• Chain Hotels
• Independent Hotels

UK Hospitality Market, By Segment

• Luxury Hotels
• Mid & Upper-Mid-Scale Hotels
• Budget & Economy Hotels
• Service Apartments