The Hospitality Market in the UK is Dynamic and Competitive, With A Mix of Domestic and International Brands in the Hotel and Restaurant Sectors. Despite Brexit Uncertainties, The Tourism Sector Saw Increased Investments in 2021, Particularly in London, Due To Rising Travel and Demand for New Accommodation. This Growth is Attracting Investors To Service Apartments, Shared Spaces, and Over 88 New Hotel Projects. Major Players in the Leisure and Entertainment Market Include Whitbread Group, Intercontinental Hotels Group, Travelodge, Accor SA, and Marriott International, Inc.

The United Kingdom’s hotel market ranges from renowned 5-star and luxury hotels to major national budget brands. In 2023, the market size of the hotel industry in the UK was valued at approximately 24.7 billion British pounds, up from the previous year's total of 16.42 billion British pounds. In 2024, the market size of this industry was forecast to decrease marginally by around 400 million British pounds. How high is the UK’s hotel occupancy rate? The monthly hotel occupancy rate in the UK reached 74 percent in March 2024. While this figure was a slight decrease from the same month in the previous year, it was significantly higher than in the years 2020, 2021, and 2022. In March 2020 and 2021, the country's hotel occupancy rate had fallen to 37 percent and 33 percent, respectively. The low occupancy rate during 2020 and 2021 was due to the impact of the coronavirus (COVID-19) pandemic which greatly limited travel and tourism across the globe. Who are the key players in the UK hotel industry? During the 2022/23 financial year, Whitbread’s annual revenue amounted to 2.63 billion British pounds. Whitbread is a UK multinational leisure and hospitality company, best known as the owner of the Premier Inn hotel brand which can be found across the country. Meanwhile, the gross revenue of Holiday Inn hotels worldwide totaled six billion U.S. dollars in 2023. Holiday Inn is a brand of hotels owned by the British company InterContinental Hotels Group.

The turnover of enterprises in the food and beverage service industry in the United Kingdom varied by sector from 2015 to 2022. Restaurants and mobile food services generated the highest income with a turnover of approximately 50 billion British pounds in 2022. Other sectors include beverage serving activities (pubs, bars and licensed clubs), event catering and other food services. In total, revenues of the UK food service industry valued 87.15 billion British pounds in 2022.

The Report Covers Biggest Hospitality Companies in UK and it is Segmented by Property Type (Hotels and Accommodations, Spas and Resorts, and Other Property Types). The report offers market size and forecast for Hospitality Real Estate Sector in the United Kingdom in value (USD billion) for all the above segments.

The United Kingdom Hospitality Market size was valued at USD 69.50 Billion in 2024 and is projected to reach USD 99.38 Billion by 2032, growing at a CAGR of 4.5% from 2025 to 2032.

Key Market Drivers:

Rising Domestic and International Tourism: Tourism is a significant driver of the UK hospitality market, with both domestic and international visitors contributing to growth. International visits are projected to increase by 4.3% annually from 2024 to 2028.

Increase in Staycations and Domestic Travel: The UK’s domestic tourism industry has seen a surge in popularity, with domestic tourism generating £72.9 billion in 2023, up 12% from 2022.

The gross value added (GVA) of the accommodation and food services sector in the United Kingdom was 62.8 billion British pounds in 2024, an increase when compared with 2023, when the GVA for this sector was 62.7 billion pounds.

The UK extended stay hotel market is expected to experience steady growth, projected to rise from USD 3.1 billion in 2025 to USD 4.9 billion by 2035, with a CAGR of 4.6%. This growth is primarily driven by the increasing demand for long-term stays from business professionals, expatriates, and families.

Attribute	Value
Estimated UK Industry Size (2025E)	USD 3.1 billion
Projected UK Value (2035F)	USD 4.9 billion
Value-based CAGR (2025 to 2035)	4.6%

The annual turnover of hotel and similar accommodation enterprises in the United Kingdom increased dramatically from 2021 to 2022. In 2022, the hotel industry generated a turnover of approximately 22.99 billion British pounds, which denoted an increase of 46 percent from the previous year.

The size of the MENA Hospitality Market was valued at USD 262.88 USD Billion in 2023 and is projected to reach USD 419.10 USD Billion by 2032, with an expected CAGR of 6.89% during the forecast period. The term MENA hospitality refers to the hospitality industry in the MENA (Middle East and North Africa) region, a diverse and rapidly evolving sector characterized by its unique blend of cultural influences, luxurious offerings, and significant economic potential. The MENA region comprises countries such as Saudi Arabia, the UAE, Qatar, Egypt, Morocco, and others, each with distinct cultural, religious, and historical backgrounds. As one of the fastest-growing regions in the global hospitality market, MENA hospitality encompasses a wide range of services, from high-end luxury hotels and resorts to local guesthouses, restaurants, and entertainment complexes. This growth is primarily attributed to the burgeoning tourism sector, increasing disposable incomes, government initiatives to promote tourism, and the growing popularity of staycations. Moreover, rising awareness of the region's rich cultural heritage, coupled with the expansion of the luxury hospitality segment, is further propelling market expansion. Recent developments include: April 2024: Rotana, an Abu Dhabi, UAE-based hotel company, launched its new hotel, Dar Rayhaan, by Rotana in Al Khobar, Saudi Arabia. According to the company, the new hotel features 13 rooms and 20 suites with a 24-hour gymnasium, outdoor swimming pool, and complimentary private parking., January 2024: IHG Hotels & Resorts, a Denham, U.K.-based hotel chain, in partnership with Firdous Abha Hotel Holding Company and Aleph Hospitality, signed a franchise agreement for a new-build 110 rooms boutique hotel, Hotel Indigo Abha, in Saudi Arabia., November 2023: Minor Hotel, a Thailand-based hotel company, announced the launch of its new luxury resort, Anantara Santorini Abu Dhabi Retreat in UAE. According to the company, the new resort will expand its portfolio across the region., August 2022: Waldorf Astoria Hotels & Resorts, a brand of Hilton hotels, made its debut in Kuwait by launching a luxury hotel with 200 deluxe rooms and suites, Waldorf Astoria Kuwait., March 2022: Taj, a brand of Indian Hotel Company, launched its new Taj Exotica Resort & Spa, The Palm, in Dubai. According to the company, the new hotel features 325 rooms and suites with Jiva Spa and various culinary experiences.. Key drivers for this market are: Increasing Popularity of Religious Tourism to Encourage New Players’ Entry. Potential restraints include: Increasing Popularity of Religious Tourism to Encourage New Players’ Entry. Notable trends are: Increasing Popularity of Religious Tourism to Encourage New Players’ Entry.

The revenue in the 'Hotels' segment of the travel & tourism market in the United Kingdom was forecast to continuously increase between 2024 and 2029 by in total 2.7 billion U.S. dollars (+12.62 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 24.13 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Hotels' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the number of users and average revenue per user (ARPU). The Statista Market Insights cover a broad range of additional markets.

Hospitality can be defined somewhat broadly as an industry that focuses on providing consumers with a means to participate in leisure activities, be that staying in a hotel or dining in a restaurant. It encompasses many industries, the largest of which are accommodation and food and drink services. In 2023, the global hospitality market reached over 4.7 trillion U.S. dollars and was forecast to grow to around 5.5 trillion U.S. dollars in 2024.

The European Luxury Hotel Market Report is Segmented by Service Type (business Hotels, Airport Hotels, Holiday Hotels, And Resorts and Spas) and Geography (Italy, Germany, Spain, France, Switzerland, The United Kingdom, And the Rest of Europe). The Report Offers Market Size and Forecasts for the European Luxury Hotel Market in Value (USD) for all the Above Segments.

The United Kingdom Full Service Restaurants Market is segmented by Cuisine (Asian, European, Latin American, Middle Eastern, North American), by Outlet (Chained Outlets, Independent Outlets) and by Location (Leisure, Lodging, Retail, Standalone, Travel). Market Value in USD is presented. Key data points observed include the number of outlets for each foodservice channel; and, average order value in USD by foodservice channel.

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Hospitality Real Estate Market Size 2025-2029

The hospitality real estate market size is forecast to increase by USD 148.3 billion at a CAGR of 15.1% between 2024 and 2029.

The market in North America is experiencing significant growth, driven by various factors. One key trend is the increasing popularity of private equity investments in the sector, as firms seek to capitalize on the potential returns offered by hotels, casinos, gaming properties, vacation rentals, and dining establishments. Technological advancements, such as the adoption of smart sensors, LED lighting, and spa facilities, are also transforming the industry, enhancing the guest experience and improving operational efficiency. However, uncertain macroeconomic conditions pose a challenge, as rising interest rates and inflation can impact demand for travel and business accommodations. REITs and other real estate investment vehicles continue to play a crucial role in asset management, with tech giants like Apple leading the way in innovative property management solutions. Overall, the market is poised for continued growth, driven by these trends and the resilience of the travel and tourism industry.

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The market encompasses hotels and accommodations, including luxury properties, in urban areas and tourist destinations. This sector has experienced significant disruption due to travel restrictions and social distancing measures implemented globally. The mobility rates of both domestic and international travelers have plummeted, pushing the industry into a recovery phase. Private equity, institutional investors, and investment fund entities continue to show interest, recognizing the long-term potential of this market. Despite the challenges, the market remains sizeable, with key segments such as complete service hotels, limited service hotels, extended accommodation, meeting centers, restaurants, catering facilities, spas, and recreational facilities contributing to its diversity.
The luxury segment, in particular, has shown resilience, with travelers seeking premium experiences during their limited travels. The hospitality sector's future direction is uncertain, with industry experts closely monitoring the impact of recessionary trends, potential bank failures, and the eventual easing of travel restrictions. The industry's ability to adapt to changing consumer preferences and behaviors will be crucial in navigating this challenging environment. Investment in new hotel construction projects is expected to remain cautious, with developers weighing the risks against potential rewards. The market's recovery is anticipated to be gradual, with a focus on enhancing guest safety and experience to regain traveler confidence.

How is this Hospitality Real Estate Industry segmented and which is the largest segment?

The hospitality real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Full service restaurants
  Quick service establishments
  Catering services


Type

  Hotels and accommodation
  Spas and resorts
  Other services


Sector

  Owned and operated
  Franchised properties
  Real estate investment trusts
  Management contracts


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Application Insights

The full service restaurants segment is estimated to witness significant growth during the forecast period. The market is experiencing growth due to the increasing adult population aged 25-49 years, who prioritize convenience and work-life balance by dining out at full-service restaurants. Consumers seek menu flexibility and variety, leading full-service restaurant operators to offer multi-cuisine dishes. Promotional offers and discounts from companies enhance the customer experience and provide opportunities for improvement. Travel restrictions, social distancing, and mobility rates have impacted the industry during the recovery phase, particularly in urban areas. International travel restrictions have affected traveler inflow, but domestic tourism and extended accommodation options, such as resort hotels, have shown resilience. Private equity, institutional investors, and investment fund entities continue to invest in hotels and accommodations, including luxury properties.

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The full service restaurants segment was valued at USD 49.90 billion in 2019 and showed a gradual increase during the forecast period.

R

According to Future Market Insights (FMI), the luxury hotel market is estimated at US$ 99.868 billion in 2023 and is projected to reach US$ 117.169 billion by 2033, at an anticipated CAGR of 5.3 % from 2023 to 2033.

Attribute	Details
Market HCAGR (From 2018 to 2022)	4.1%
Market Size - 2018	US$ 81.097 billion
Market Size - 2022	US$ 95.113 billion

Attribute	Details
Market CAGR (From 2023 to 2033)	5.3%
Market Size - 2023	US$ 99.868 billion
Market Size - 2033	US$ 117.169 billion

Country - Wise Insights

Attributes	Details
North America Market Share - 2023	24%
United States Market Share - 2023	6%
Australia Market Share - 2023	5.2%

Attributes	Details
Japan Market Share - 2023	4%
China Market CAGR (From 2023 to 2033)	6.5%
India Market CAGR (From 2023 to 2033)	4.5%

Attributes	Details
Europe Market Share - 2023	20.1%
Germany Market Share - 2023	3.5%
United Kingdom Market CAGR (From 2023 to 2033)	6.6%

Category - Wise Insights

Category	Room Type
Leading Segment	Luxury
Market Share	31%

Category	Type
Leading Segment	Business Hotels
Market Share	28%

The United Kingdom Quick Service Restaurant Market is segmented by Cuisine (Bakeries, Burger, Ice Cream, Meat-based Cuisines, Pizza), by Outlet (Chained Outlets, Independent Outlets) and by Location (Leisure, Lodging, Retail, Standalone, Travel). Market Value in USD is presented. Key data points observed include the number of outlets for each foodservice channel; and, average order value in USD by foodservice channel.

The market size of the restaurant industry in the United Kingdom was predicted to rise to 19 billion British pounds in 2024, which would represent an increase of 1.3 percent over 2023. That year, the industry's market value stood at 18.76 billion British pounds.

Snapshot img

Boutique Hotels Market Size 2025-2029

The boutique hotels market size is forecast to increase by USD 11.36 billion at a CAGR of 7.1% between 2024 and 2029.

The market is experiencing significant growth due to the expanding tourism industry and the increasing preference for unique and authentic experiences among travelers. Boutique hotels offer personalized services, customized health and wellness programs, and catering options that cater to individual needs. Seasonality and demand fluctuations are key challenges for this market, requiring hotels to implement digital solutions such as artificial intelligence and automation to optimize operations and enhance guest experiences. The cruise industry is also integrating boutique hotels onboard ships to cater to the evolving needs of luxury travelers. The market is poised for continued growth as travelers seek personalized, high-quality experiences in the competitive tourism landscape.

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The market caters to travelers seeking unique, personalized experiences, focusing on authenticity, local culture, and high-quality service. This market encompasses urban boutique hotels, boutique beach resorts, and independent properties, all offering individualized service and soft branding strategies. Young travelers, particularly millennials, are driving growth in this sector, favoring experiential stays over extended vacations. Online booking and digital platforms facilitate convenience, while social media and online reviews influence consumer decisions. Aesthetics, health services, and eco-conscious travel are key trends, with energy-efficient systems and mobile key systems enhancing the guest experience. Loyalty programs and personalized travel experiences further differentiate this market from mass-market accommodations.

How is this Boutique Hotels Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Business hotels
  Suite hotels
  Airport hotels
  Resort hotels


Channel

  Online booking
  In-person booking


Service Type

  Luxury boutique hotels
  Budget boutique hotels
  Family-friendly boutique hotels
  Adults-only boutique hotels


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Type Insights

The business hotels segment is estimated to witness significant growth during the forecast period.

Business hotels have gained popularity due to their ability to cater to the distinct needs of business travelers. Strategically located in commercial and financial districts, these hotels offer easy access to major business centers, corporate offices, and conference venues, saving time and providing convenience. Business hotels provide specialized amenities and facilities, such as well-equipped meeting rooms, conference facilities, high-speed Internet access, business centers, printing and copying services, and 24-hour room service. Young travelers, millennials, and extended vacationers also seek experiential stays, personal space, and personalized service, which business hotels often offer. Tech-driven hospitality, themed experiences, pet-friendly accommodations, art-centric hotels, and eco-conscious travelers are other target markets.

Online booking, social media marketing, and loyalty programs are essential digital platforms for these hotels. Sustainable practices, such as energy-efficient systems, water conservation, and locally sourced food, appeal to affluent and leisure travelers.

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The business hotels segment was valued at USD 7.13 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 33% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Another region offering significant growth opportunities to vendors is North America. They have experienced significant growth in North America over the last decade, catering to travelers seeking personalized and intimate accommodations. Known for their stylish and aesthetically pleasing interiors, these unique lodgings offer a visually appealing experience for those who value design and ambiance. Millennials, short-trip travelers, and extended vacationers, as

Spending on restaurants and hotels in the United Kingdom drastically declined in 2020 compared to the previous year. During this period, consumer spending fell to 77.45 billion British pounds, a decrease of 42 percent from the previous year. Consumer spending on restaurants and hotels in the UK was significantly impacted by the coronavirus (COVID-19) pandemic which resulted in strict stay-at-home measures across the country to control the spread of the virus. In 2021, consumer spending grew to over 117 billion.

The approximate gross value added (GVA) of enterprises in the accommodation and food service industry in the United Kingdom increased from 2021 to 2022. Accommodation and food service activities contributed approximately 63 billion British pounds to the UK non-financial business economy in 2022.