Hotels - UK - October 2013
Market Supply and Share Key points
● As of mid-September 2013, there were an estimated 11,840 hotels and 575,000 rooms in the UK.
● In terms of number of hotels around 37% of the market is branded and 63% independent.
● The budget sector is estimated to account for around 14% of the market by number of hotels and 23% of the market by number of rooms.
● The leading groups in the market are the budget chains Premier Inn (owned by Whitbread) and Travelodge. Their combined market share is an estimated 10% of UK hotels and 15% of UK hotel rooms.
● During 2012 UK hotel supply increased by around 18,000 rooms, the highest increase over the past decade. Around 90% of new rooms in 2012 were branded.
● Around 3,300 new rooms are expected to open in the UK by the end of 2013 and a further 15,000 during 2014. Over half are expected to be in budget hotels.
● Around 5,000 new hotel rooms in 2013/14 are expected to be in the four-star or upscale categories.

Chains versus independent
As of mid-September 2013, there were an estimated 11,840 hotels and 575,000 rooms in the UK, according to AM:PM Hotels*.

(*The definition of hotels used by AM:PM Hotels excludes B&Bs and guesthouses, except where such properties have 15 en-suite bedrooms or more, operate a licensed bar and serve an evening meal. The definition also includes hostels and serviced accommodation such as apartments, although such businesses account for 5% or less of the total.)

As part of this total there were an estimated:

● 1,280 hotels and 127,700 rooms in London
● 1,628 budget hotels with 132,465 rooms
● 4,400 branded chain hotels with 385,500 rooms.

In terms of number of hotels around 37% of the market is branded and 63% independent. However, in terms of rooms, around 67% are branded and 33% independent – owing to the large volume of smaller independent