As of August 2020, about 65 percent of businesses in the accommodation and food service sector in the United Kingdom had experienced a decrease in footfall in the last two weeks due to the ongoing coronavirus pandemic. For approximately 10.6 percent of businesses in the industry, footfall had increased.

The United Kingdom’s hotel market ranges from renowned 5-star and luxury hotels to major national budget brands. In 2024, the market size of the hotel industry in the UK was valued at approximately **** billion British pounds, down from the previous year's total of **** billion British pounds. In 2025, the market size of this industry was forecast to increase by around *** million British pounds. How high is the UK’s hotel occupancy rate? The monthly hotel occupancy rate in the UK reached ** percent in March 2025. 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 ** percent and ** 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 2023/24 financial year, Whitbread’s annual revenue amounted to **** 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 *** billion U.S. dollars in 2024. Holiday Inn is a brand of hotels owned by the British company InterContinental Hotels Group.

The United Kingdom Hospitality Industry Segments by Sector (Accommodation, Food and Beverage Service Establishments, and More), by Service Model (Full-Service, Limited / Budget and More), by End-User (Leisure Travellers, Business Travellers and More), by Booking Channel (Direct, Online Travel Agencies, and More), by Ownership Model (Independent Operators and Chain / Branded), by Geography.

As the coronavirus (COVID-19) outbreak hit the United Kingdom, footfall to bars and restaurants declined. Across the hospitality sector on March 20, 2020, there had been a 58 percent decline in footfall in the last seven days compared to the same seven days in 2019. Bars, pubs and restaurants were ordered to close to visitors on March 20.

Business leaders in the eating and drinking out sector in the UK expected 85 percent of hotels to re-open after the lockdown measures due to the coronavirus (COVID-19) are lifted. They were less optimistic with regards to the late night sector, expecting 69 percent of establishments to re-open.

Performance in the Hotels industry is shaped by a mix of domestic tourism, robust inbound international travel and evolving consumer preferences. London, in particular, remains one of the most visited cities in Europe, while regional hotels draw in plenty of domestic travellers. Adverse economic conditions, including the COVID-19 pandemic and inflationary pressures, have caused volatility in industry revenue. Intense competition and changing guest expectations around value, experience and sustainability are having a profound impact on operations. Industry revenue is expected to soar at a compound annual rate of 16% over the five years through 2025-26 to reach £27.5 billion, despite a slight 0.3% dip in 2025-26. Expanding domestic and international tourism after the removal of COVID-19 restrictions fuelled a recovery in revenue and profit for hotels. However, the boom in staycations noted during the three years through 2023-24 has dissipated amid poor weather and lingering financial challenges, weakening occupancy rates and revenue over the two years through 2025-26. Nonetheless, growth in inbound visits has continued, providing opportunities for hotels targeting international consumers. The popularity of short-term rentals, including listings on Airbnb, Vrbo and Booking, is luring consumers away from hotels and forcing them to continually improve services. The digital revolution is transforming the industry's operations, with online travel agents allowing independent hotels to target a broader customer base and boost bookings, but also imposing commissions. These competitive pressures, combined with mounting operating costs amid inflationary pressures and labour challenges, have weighed on the average profit margin. The hikes in National Living Wage and the employer National Insurance contributions are hurting hotels in 2025-26. Hotels’ revenue is forecast to expand at a compound annual rate of 3.3% over the five years through 2030-31 to £32.4 billion. Growing tourism numbers, particularly international visitors, and improving confidence and disposable incomes will drive revenue growth. VisitBritain forecasts a record 43.4 million inbound visits to the UK in 2025. Platforms like Airbnb will continue to threaten hotels, though potential new regulations on short-term rentals may weaken this. Hotels will invest in technology and facilities to meet growing consumer preferences and willingness to pay more for unique experiences, wellness and sustainability. Technology can also help make operations more efficient, reduce operating cost pressures and support profit. Yet, severe staff shortages and price pressures from short-term rentals and OTAs will constrain profit growth.

The coronavirus (COVID-19) pandemic had a major impact on businesses within the accommodation and food service industry in the United Kingdom. Fewer businesses were trading at the start of the outbreak in March 2020, with the lowest value recorded during the first few weeks of lockdown from April 6-19 (18.2 percent). Since July most businesses have returned to trading, reaching close to 90 percent in the first week of August. However, the share of accommodation and food service businesses trading have fluctuated from September 21 onwards. By March 21, 2021, the number of businesses trading reached 37.3 percent.

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.

Hotels and short-term accommodation providers in Europe enjoy strong demand due to the continent’s well-developed tourism sector and significant number of holiday destinations that cater to various consumer needs. European residents often holiday domestically or go on trips to other European countries due to how quick and easy it is to travel to them. Rising domestic and international tourism has fuelled accommodation demand across the continent, though companies have faced strong competition from short-term lets. Revenue is slated to inch downward at a compound annual rate of 0.1% over the five years through 2025 to €202.8 billion, including an expected 0.2% drop in 2025. Despite the numerous popular holiday spots spread across Europe, including Spain, Italy and France, hotels and other holiday accommodation providers weren’t prepared for the catastrophic drop in tourism caused by the COVID-19 pandemic in 2020. The easing of travel restrictions in 2021 and 2022 drove revenue back up, supported mostly by heightened domestic tourism due to heightened consumer confidence and a trend towards staycations. International travel recovered and drove up occupancy rates and RevPAR, especially in the upscale and luxury segments. Since 2022, though, severe inflation and heightened economic and geopolitical uncertainty have squeezed consumers’ budgets, limiting spending on holidays. European hotels and short-term accommodation providers face intense competition, putting pressure on prices and RevPAR. The popularity of online booking platforms like Airbnb has played a big part in increasing competitive pressures. To attract potential guests, accommodation providers are adopting dynamic pricing strategies and investing in enhancing the customer experience through innovation and differentiation. The use of advanced technology and the wellness tourism trend have shaped the industry’s focus. Nonetheless, intense competition and elevated operating costs like rent, purchases and wages have constrained profit. Revenue is forecast to swell at a compound annual rate of 2.5% over the five years through 2030 to €229.3 billion. A mounting number of international guests and strong demand for domestic holidays will drive growth. Climbing disposable income and wealthy international tourists flocking to European destinations is set to stimulate spending on upscale hotels and holiday accommodation. Regulatory crackdowns on short-term rentals in many European countries may ease competitive pressures, while escalating consumer demand for sustainable travel is driving providers to adapt. Innovation, sustainability and guest-centric strategies will be key to capturing market share and responding to evolving traveller expectations.

The pandemic has had a notable impact on the physical, mental and social health of older adults (Age UK., 2021), a group who were disproportionately affected by social distancing measures (Pantaris et al., 2020). This has coincided with an unprecedented financial shock to the hospitality sector (Hutton et al., 2022), with government figures suggesting this industry shrank by more than 40% in 2020 relative to 2019. This project helps support social connections and ‘build back better’ by focusing on a group (older adults) and sector (hospitality) who were both disproportionately impacted by the pandemic.

Cafes and pubs are venues for sociality and companionship, often perceived as connecting individuals and groups in beneficial ways (Rosenbaum et al., 2007; Dunbar, 2016). This research aims to develop our understanding of current and potential opportunities for the hospitality business to play an influential role in supporting social connections. This project takes a qualitative approach, conducting go-along interviews with older adults (aged 65+), hospitality businesses and policy influencers to investigate how engagement with hospitality services could help older adults from diverse socioeconomic backgrounds become more socially connected.

When asked about a proposed points-based system for immigration following the United Kingdom's exit from the EU (Brexit), the majority of hospitality industry leaders said the criteria should take labor shortage areas into consideration. Prior to Brexit, many UK restaurant and hotel businesses relied on EU migrants to fill skill gaps and hard-to-fill vacancies. As EU workers will no longer have the right to freedom of movement in the UK from 2021, there are concerns about the impact new immigration rules will have on the hospitlity workforce.

Data on the share of small and medium enterprises (SME) in the hospitality sector in the United Kingdom (UK) that made a profit between 2014 and 2020 shows that in 2016, 79 percent of hospitality SMEs based in the UK made a profit, the most of any year.

Due to the coronavirus (COVID-19) outbreak in the United Kingdom, bars, pubs and restaurants were forced to close to visitors on March 20, 2020. Footfall in the hospitality sector showed a staggering decline compared to last year; Nightclubs had already seen 75 percent fewer visitors in the last seven days and restaurarnts 74 percent fewer. Footfall in restaurants fell by 94 percent on the day of the closure.

Hotels (establishments that provide paid lodging and full guest services, typically with a continuous staff presence) market have seen moderate change in the recent years and is also expected to evolve in similar fashion in the near future. The report United States Hotels Market Analytics to 2020: Rooms and Revenue Analytics provides deep dive data analytics on wide ranging Hotels business aspects including overall revenue by customer type – Business and Leisure, by type of hotel – Budget, Midscale, Upscale & Luxury, Room & Non-Room Revenues, Number of Establishments & Rooms and Guest In-Flow for the period 2011 to 2015 and forecast to 2020. Furthermore, the report also details out Room Occupancy Rate (percentage of available rooms sold during a given period), Rooms Nights Available and Occupied, Revenue per Room by Hotel Category for the period 2011 to 2020 along with Total Revenues by Hotel Category & Customer Type. The report acts as an essential tool for companies active or plans to venture in to the United States' Hotels business. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting. This is an on-demand report and will be delivered within 2 working days (excluding weekends) of the purchase. Read More

A list of fast facts on the performance of each sector of the UK economy.

Hotels (establishments that provide paid lodging and full guest services, typically with a continuous staff presence) market have seen moderate change in the recent years and is also expected to evolve in similar fashion in the near future. The report Norway Hotels Market Analytics to 2020: Rooms and Revenue Analytics provides deep dive data analytics on wide ranging Hotels business aspects including overall revenue by customer type – Business and Leisure, by type of hotel – Budget, Midscale, Upscale & Luxury, Room & Non-Room Revenues, Number of Establishments & Rooms and Guest In-Flow for the period 2011 to 2015 and forecast to 2020. Furthermore, the report also details out Room Occupancy Rate (percentage of available rooms sold during a given period), Rooms Nights Available and Occupied, Revenue per Room by Hotel Category for the period 2011 to 2020 along with Total Revenues by Hotel Category & Customer Type. The report acts as an essential tool for companies active or plans to venture in to the Norway’s Hotels business. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting. This is an on-demand report and will be delivered within 2 working days (excluding weekends) of the purchase. Read More

Over the five years through 2024-25, the nightclub industry’s revenue is expected to tumble at a compound annual rate of 14.2% to £764.4 million, including a 5.1% drop in 2024-25. The nightclub industry experienced immense revenue volatility due to the COVID-19 outbreak, which resulted in clubs closing temporarily over 2020-21. Following COVID-19, skyrocketing inflation led to consumers, especially younger demographics, becoming more budget-conscious, resulting in decreased spending on nightlife activities or avoiding clubbing altogether. The combined impact of COVID-19 and the cost-of-living crisis severely weighed on the performance of nightclubs. When COVID-19 was at its worst, stay-at-home and trading restrictions on the hospitality sector prevented nightclubs from generating revenue, with operational costs becoming unmanageable and pushing many nightclubs to close permanently. The lifting of restrictions on nightclubs led to a resurgence in revenue in 2021-22. However, the cost-of-living crisis has plagued the industry’s recovery, as many Britons reduced their spending on nightclub outings. COVID-19 also boosted the UK's downward trend in alcohol consumption, weighing on industry revenue. Persistent inflation and supply disruptions have severely impacted the industry's profitability. Clubs have faced significantly higher operational costs, primarily driven by increased energy, rent and labour expenses, resulting in many nightclub closures. With a lack of government assistance to support the industry, the future of nightclubs hangs in the balance. Industry revenue is forecast to dip at a compound annual rate of 0.2% over the five years through 2029-30 to £756.5 million. Nightclub owners will continue to face challenges. Without government intervention, like VAT reductions to offer financial relief, many clubs will close their doors due to financial losses and diminishing demand from consumers as alcohol consumption declines. With inflation subsiding, consumers will expand their spending as a growing number of clubs expand their offerings, including non-alcoholic options, in a bid to capitalise on this trend. Moreover, fierce competition from substitutes will persist, encouraging nightclubs to innovate their club experiences by investing in high-tech light and sound systems. However, many consumers will likely turn to bars, pubs and other social activities rather as nightclubs’ appeal diminishes.