The branded budget hotel market in the UK continues to be dominated by just two large players, according to new research by TRI Hospitality Consulting. Figures from Budget Hotels 2010 UK show that the biggest brand, Premier Inn, had 41,511 rooms at the end of 2009 which gave it a market share of almost 38%.
The nearest rival to Premier Inn is Travelodge with 27,010 at the year end, giving it a market share of just under 25%. The top two budget hotel brands in the UK thus have more than two-thirds of the market.
"The branded budget market in the UK is concentrated in just a few companies. But competition continues to flourish in the overall hotel sector as the branded budget hotels take on mid market hotels and guesthouses," said Jonathan Langston, managing director of TRI Hospitality Consulting.
Since 1993, the number of branded budget hotel rooms in the UK has grown more than tenfold, increasing from 10,555 rooms to 109,528 rooms at the end of 2009. And while Premier Inn and Travelodge dominate, there have been many new brands entering the growing market.
The most successful challenger has been Holiday Inn Express which now has 109 hotels with 12,464 rooms. This is less than half the number of rooms of Travelodge, however, and less than a third of Premier Inn.
The new report, produced by HotStats and published by industry newsletter Hotel Analyst, also makes clear that while resilient, the sector has not remained unscathed by the recession.
During 2009, revenue per available room fell by 9.1%, with occupancy dropping by 5.9 percentage points to 67.8% and rate holding up better with a fall of 1.1% to £50.97.
"The budget hotel market has truly been the hotel industry's success story of the last decade. While trading has suffered in the recession, new hotels are continuing to open, reflecting the long term viability of the segment," said Langston.
The 40 plus pages of the report details the historical development of branded budget hotels in the UK; examines the supply structure by geographical region, by city and by market sector; and also gives demand figures by geographical region, by city and by market sector.
The UK's leading branded budget hotel operators
Number of Hotels
Number of rooms
Holiday Inn Express
Source: Budget Hotels 2010 UK
Budget Hotels 2010 UK costs £995 plus VAT and is available from the publisher, Hotel Analyst (www.hotelanalyst.co.uk).
For more information contact:
Andrew Sangster Hotel Analyst 020 8870 6388 Andrew@zerotwozero.co.uk
Jonathan Langston managing director 020 7892 2201 firstname.lastname@example.org
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