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Q1 2017 Hotel Bulletin

Budget hotels fastest growing in UK

Budget hotels account for nearly two-thirds of the UK’s top 10 brands, the Q1 2017 Hotel Bulletin showed.

The data published by HVS, AlixPartners AM:PM and STR, showed that budget hotel brands supplied 64% of rooms in the country in the first quarter of the year.

In terms of active bedroom pipeline, Premier Inn and Travelodge made up 52% of all branded rooms in the UK’s top 10 and were the two fastest developing brands.

Whitbread-owned Premier Inn, opened 10 new hotels in the first quarter of 2017.

Of the 10 brands with the highest number of active pipelines, the top six which had more than 1,000 rooms were all budget hotels. The Marriott and Hilton-owned hotels which were in the top 10 were also at the lower end of the price scale.

Russell Kett, chairman of HVS, said: “The growth in budget hotels continues a trend in the hotel sector which is slowly but surely modernising the quality of affordable hotel stock, delivering greater consistency of product and great value for money.

“They are much cheaper to develop than full-service hotels, require less land, and can be developed on sites which are in secondary or tertiary locations, as opposed to prime city or town centre sites.”

About Shekina Tuahene

Shekina Tuahene
Shekina is a multimedia journalist who has lived in London all her life. She is an alumnus of University of Greenwich and Brunel. Shekina loves to read, travel, socialise and listen to music. If you have any story or feature ideas, feel free to drop her a line.

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