United Kingdom Luxury Hotel Market Size, Share, and COVID-19 Impact Analysis, By Category (Chain, Independent), By Type (Business Hotels, Airport Hotels, Holiday Hotels, Resorts & Spa), and United Kingdom Luxury Hotel Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Luxury Hotel Market Insights Forecasts to 2035

• The Market Size is Expected to Grow at a CAGR of around 6.4% from 2025 to 2035
• The United Kingdom Luxury Hotel Market Size is Expected to reach a significant share by 2035.

According to a research report published by Spherical Insights & Consulting, the United Kingdom Luxury Hotel Market Size is anticipated to Grow at a CAGR of 6.4% from 2025 to 2035, Expected to reach a significant share by 2035. The region's market is being driven by a rising middle class, the rise in international travel and business trips, and increasing digitalization that improves visitor satisfaction through personalized services.

Market Overview

The United Kingdom luxury hotel market refers to high-end lodging alternatives that provide wealthy tourists first-rate services, luxurious lodgings, and remarkable experiences. Luxurious amenities, custom guest experiences, and unique architectural layouts and designs set the hotels apart and offer a luxurious lifestyle experience that goes beyond simple lodging. Furthermore, the growing desire for highly customized wellness retreats, the use of AI-powered guest personalization, the expanding appeal of eco-luxury stays, and high-end partnerships with premium brands are all significant growth drivers in the U.K. luxury hotel industry. The growing influence of social media and experiential travel, where tourists seek out shareable, unforgettable encounters, is driving the premium hospitality sector in the UK. The rise in high-end corporate getaways, luxury staycations, and destination weddings is also fueling demand. Celebrity sponsorships and high-class events attract luxury tourists looking for exclusivity and status, while increased international travel and its expansion.

Report Coverage

This research report categorizes the market for the United Kingdom luxury hotel market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom luxury hotel 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 United Kingdom luxury hotel market.

Driving Factors

The market for United Kingdom luxury hotel is driven by changes in consumer lifestyles and increased disposable incomes. The growing need of the wealthy for more specialized services and unique experiences pushes luxury hotels to come up with new ideas. Globalization and improved connections, due to advancements in transportation infrastructure, have led to a sharp rise in international travel. The emergence of Gen Z and millennials as major consumer groups has spurred the development of technology-enabled services like mobile check-ins and smart room features, which further encourage customer interaction.

Restraining Factors

The issues with employment and shortages of labor, increasing running costs and price increases, taxation, and compliance with regulations impede the market expansion.

Market Segmentation

The United Kingdom luxury hotel market share is classified into category and type.

• The independent segment held a significant share in 2024 and is anticipated to grow at a rapid pace during the forecast period.

The United Kingdom luxury hotel market is segmented by category into chain, and independent. Among these, the independent segment held a significant share in 2024 and is anticipated to grow at a rapid pace during the forecast period. The segment growth is driven by individualized services, distinctive design, and genuine local experiences that appeal to tourists looking for originality. While boutique hotels enthrall guests with immersive experiences and unique aesthetics, independent hotels are excellent at crafting custom stays with a strong feeling of location and cultural integration.

• The business hotels segment held a significant share in 2024 and is expected to grow at a rapid pace during the forecast period.

The United Kingdom luxury hotel market is segmented by type into business hotels, airport hotels, holiday hotels, and resorts & spa. Among these, the business hotels segment held a significant share in 2024 and is expected to grow at a rapid pace during the forecast period. This is because of offer a wide range of amenities, including conference spaces, fast internet, business centers, seamless connectivity, and prime business locations. Besides the fundamentals of the luxury hotel industry, this segment is further bolstered by the general increase in international business travel, which is a result of globalization and the growth of multinational organizations.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom luxury hotel 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

• Millennium Hotels and Resorts
• IHG Hotels & Resorts
• Premier Inn
• Travelodge
• Center Parcs
• Whitbread
• Belmond
• Others

Recent Developments:

• In May 2025, IHG Hotels & Resorts expanded its boutique footprint in the UK with the signing of Hotel Indigo Torquay in partnership with The Fragrance Group. This new luxury and lifestyle hotel will be located in Torquay, Devon, a popular seaside destination known for its charm and leisure activities. The 153-room hotel is set to open in the second half of 2025 and will feature a rooftop bar, sea-facing terraces, a destination restaurant and bar, a gym, and [rg1] an on-site spa.

• In November 2024, Oberoi Hotels & Resorts decided to make its UK debut with a luxury boutique hotel in Mayfair, London. The hotel, named The Oberoi, Mayfair, will be part of the South Molton development, a prestigious mixed-use project. The project aligns with Oberoi’s international expansion strategy, bringing its renowned Indian luxury hospitality to one of [rg2] London’s most exclusive neighborhoods.

• In July 2024, Regent’s University London partnered with The Savoy, The Peninsula London, and Hotel Café Royal to launch a new luxury hospitality course. This program is designed to shape future leaders in the luxury hospitality sector, covering everything from operations and [rg3] marketing to guest experience.

Key Target Audience

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

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom luxury hotel market based on the below-mentioned segments:

United Kingdom Luxury Hotel Market, By Category

• Chain
• Independent

United Kingdom Luxury Hotel Market, By Type

• Business Hotels
• Airport Hotels
• Holiday Hotels
• Resorts & Spa