UK Hospitality Real Estate Sector Market Size (2024 - 2029)

Hospitality Real Estate in UK Market Analysis

The hospitality real estate sector in the United Kingdom is anticipated to register a CAGR of greater than 4% during the forecasted period. 

• The growth of hospitality sector in UK is impacted primarily due to uncertainty over fluctuating economic trends and the pound strengthening which is dampening the business investment growth, and the impact of high levels of new hotel rooms that are going to be added, particularly in London and also in other UK cities.
• The coronavirus (COVID-19) pandemic has had an uneven impact on the hospitality industry; bars and clubs fared the worst, but campsites fared better than the rest of the sector. Consumer spending on hospitality began to rise in May 2021, but it is still less than 70% of pre-pandemic levels.
• Looking at the bright side the market is attracting leisure travel and tourism, as it continues to be supported by the weaker pound followed by the short-term tax cuts that were announced in the budget, accommodative lending terms, and low-interest rates. The buoyant international tourism trends, the record numbers of visitors that are coming to the UK, and the revenue that is generated through it are shaping the market.
• The study period showed mixed trends for business travel which is a quite profitable and vital segment of the hospitality real estate sector as the Brexit negotiations were at a constant pace for the entire period. Yet, despite the Brexit uncertainty many overseas investors continued to be active, especially investors from Europe and the Middle East, and continued with their confidence in the UK hospitality real estate market. In order the strengthen the pound and to stabilize the economy over Brexit, the taxes are forecasted not likely to turn upward soon.
• The market is also recording a growing number of expansions/extensions, refurbishments, and renovations and is contributing more than 15 percent to the new hotel supply, whereas the new constructions are forecasted to continue to form the majority of projects, making a greater of the overall supply.

Hospitality Real Estate in UK Industry Segmentation

Hospitality real estate is property used to serve travelers both long-term and short-term for business and pleasure. There are a wide variety of hospitality properties that serve all types of travelers. 

The Market 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.