Hospitality Industry In United Kingdom - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Hospitality Industry In United Kingdom - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The hospitality industry in United Kingdom is projected to grow at a CAGR of 2.8% during the forecast period (2022-2027) and has become dynamic, with respect to the investment volumes recorded during the study period, owing to the uncertainty surrounding Brexit.

According to statistics given by many research organizations, the United Kingdom's hotel industry is one of the economy's worst-hit sectors during the COVID-19 pandemic and saw a significant contraction in April–June 2020. Due to the second wave, the domestic hospitality sector, which COVID-19-related disruptions have badly impacted, also experienced a significant fall in 2021.

Investments in the hospitality industry rose in 2021, and the industry also recorded positive key performance values. The overall key performers recorded in London city alone are slightly higher than the overall performance recorded by the country.

The demand for new hotels is expected to increase in the forecast period, especially in London, owing to the increasing number of travelers to United Kingdom. The impact of Brexit uncertainty is affecting the investment environment, yet the growing demand is helping the country attract investors.

The number of serviced apartments and shared spaces is increasing in the country, and this is making the country, especially London, an affordable place for many millennials and the younger generations.

The total number of tourist arrivals in United Kingdom are fluctuating. Domestic travel recorded around a few million visitors in United Kingdom in 2021. United Kingdom recorded a constantly growing number of domestic travelers till 2021.

The Brexit uncertainty resulted in a drop in leisure travel across the country and affected the overall visitor rate in United Kingdom. The uncertainty also affected the total number of international travelers and resulted in a drop in the overall tourism number.

There are more than 88 new hotel projects in the construction pipeline in London, and more than 16,000 rooms are expected to be added to the supply. The pipeline has international brands and domestic brands that are targeting the luxury segment of the industry. London is registering a growing RevPAR year-on-year, though the occupancy got stagnated between around 80-84% during 2018-2022. The growing RevPAR is helping the city attract more new projects and investors.

The hospitality industry in United Kingdom is dynamic. The industry is a combination of domestic and international brands that share high competition. The hospitality industry recorded growth numbers in 2021, both in terms of performance and investments. Moreover, the market is expected to grow during the forecast period.

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