The UK Hotel Market Was Valued at GBP 14bn in 2006, Having Increased by 28.9% since 2002

Business Wire, Dec 11, 2007

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c77073) has announced the addition of "Hotels Market Report Plus 2007" to their offering.

The UK hotel market was valued at 14bn in 2006, having increased by 28.9% since 2002. This growth was ahead of improvements in gross domestic product (GDP) and consumer spending, indicating a real improvement in the fortunes of the industry.

The business travel sector has been key to this success. Revenue is generated not only from room nights but also from the use of facilities, including conference and meeting rooms, with many of the major hotel groups having established separate brands for this sector. Hotel operators have invested in extending room and hotel facilities to target this sector more effectively.

In the leisure sector, the rise of the budget airlines gives travellers a realistic choice between breaks abroad and in the UK, often with little difference in price. Nevertheless, there has been a growing trend towards taking short breaks at UK hotels. The rise of the budget brands, together with improving restaurant and leisure facilities at other properties, has contributed to this trend.

The development of the Internet has been a major benefit to the hotel market. On the one hand, it has made it much easier for clients to find and book accommodation. On the other hand, as hotel operators have put into place best-price guarantees and effective partnership agreements with third-party agents, the Internet is also working more effectively for the hoteliers themselves.

The past decade has witnessed an increasing trend towards divorce between the ownership and operation of hotels. A number of equity groups, banks and others are now heavily involved in hotel ownership, freeing up operators to invest in brands and facilities, rather than the properties themselves. This has fuelled an increase in hotel development globally, with many groups from EasyHotel to InterContinental looking to the Asia-Pacific region to extend their presence.

At the same time, development continues within the UK. The rise in room numbers has been most evident in the budget hotels sector and has been fuelled by high occupancy levels at these properties. The focus of the major chains has polarised, as they have increasingly concentrated on the two extremes of the market -- the economy sector and the 4- and 5-star hotel sector.

With rises in household costs, as a result of food price inflation and higher interest rates, it is likely that consumer spending will tighten, which might well put some pressure on the hotel market. Consequently, growth in the short to medium term is expected to be driven largely by inflation, although there is scope for real increases in revenue.

Companies Mentioned:

Accor UK Business & Leisure Hotels Ltd

De Vere Hotels & Leisure Ltd

Guoman Hotels Ltd

Hilton International Hotels (UK) Ltd

InterContinental Hotels Group PLC

Le Meridien

Macdonald Hotels Ltd

Marriott Hotels Ltd

Millennium & Copthorne Hotels PLC

Premier Inn Hotels Ltd

The Real Hotel Company PLC

Travelodge Hotels Ltd

Accor

Best Western

Carlson Hotels Worldwide

CNL Resorts

EasyHotel

InterContinental

Golden Tulip

Hilton

Lightstone

Marriott

Rezidor

Starwood

Wyndham Hotel Group

For more information, visit http://www.researchandmarkets.com/reports/c77073