Market Trends of UK Hospitality Real Estate Sector Industry
This section covers the major market trends shaping the UK Hospitality Real Estate Sector Market according to our research experts:
The Budget Friendly Hotel is Making a Way for Branded, Independent Midscale, and Upscale Hotels
Price is the most important factor to 47% of consumers when selecting accommodation. In the overall sector, the budget-friendly hotel sector continued to dominate the market, making year-on-year growth to date. However, this trend is likely to be slowed down a bit by the continuing rise of branded and independent midscale and upscale hotels, reflecting the apparent growing trend for lifestyle hotels and customers' preferences. The increasing affordability of people, and their desire to travel, and experience are shaping this trend and the hospitality real estate sector. The hotel sector continues to evolve to meet dynamically changing customer needs. Edinburgh, London, Brighton, York, and Birmingham, which is set to host the 2022 Commonwealth Games, are topping the list of most attractive cities in the country.
The pandemic has put a significant strain on travelers' finances. Despite this, travel demand remains high, and many people are desperate for a change of scenery. Travelers are more likely to forego the extras provided by mid- to upper-tier hotels in exchange for a more basic 'pay for what you need' service standard.' However, the pandemic has caused a shift in traveler sentiment that could impact this type of investment.
The Growing Number of Serviced Apartments is going to Shape the Market
The accommodation segment of the market is continuing to widen with innovative players that are entering the market and are changing the definitions of classic accommodation. In the new age of urbanization, changes in living-trends, co-living, and sharing experiences have resulted in the serviced apartments. The sector is adapting to the demands and expectations of the widening pool of customers. The serviced apartments and home share products are evolving and attracting a great number of travelers. Serviced apartments have gained huge popularity over time, with a growing acceptance of a homestay concept. The serviced apartment sector in the country has been the fastest-growing sub-sector since 2010. The sector has recorded an annual average growth of around 5%, and it is predicted to record a remarkable growth number during the forecast period as well.
