U.K. Budget Hotels 2010
Top two dominate branded budget hotel market
"The branded budget market in the UK is concentrated in just a few companies. But competition continues to flourish in the overall hotel sector as the branded budget hotels take on mid market hotels and guesthouses," said Jonathan Langston, managing director of TRI Hospitality Consulting.
Since 1993, the number of branded budget hotel rooms in the UK has grown more than tenfold, increasing from 10,555 rooms to 109,528 rooms at the end of 2009. And while Premier Inn and Travelodge dominate, there have been many new brands entering the growing market.
The most successful challenger has been Holiday Inn Express which now has 109 hotels with 12,464 rooms. This is less than half the number of rooms of Travelodge, however, and less than a third of Premier Inn.
The new report, produced by HotStats and published by industry newsletter Hotel Analyst, also makes clear that while resilient, the sector has not remained unscathed by the recession.
During 2009, revenue per available room fell by 9.1%, with occupancy dropping by 5.9 percentage points to 67.8% and rate holding up better with a fall of 1.1% to £50.97.
"The budget hotel market has truly been the hotel industry's success story of the last decade. While trading has suffered in the recession, new hotels are continuing to open, reflecting the long term viability of the segment," said Langston.
The 40 plus pages of the report details the historical development of branded budget hotels in the UK; examines the supply structure by geographical region, by city and by market sector; and also gives demand figures by geographical region, by city and by market sector.
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