The UK's branded budget hotel market continues to be dominated by Premier Inn and Travelodge, according to new a new report by TRI Hospitality Consulting.
Budget Hotels 2010 UK shows that the largest brand, Premier Inn, with 582 hotels and 41,511 rooms at the end of 2009, had 38% of the market, while Travelodge, with 377 hotels and 27,010 at the end of last year, had a market share of just under 25%.
Jonathan Langston, managing director of TRI Hospitality Consulting, said that while the branded budget market in the UK was concentrated in just a few companies, competition continues to flourish in the overall sector as the branded budget hotels take on mid-market hotels and guesthouses.
"The budget hotel market has truly been the hotel industry's success story of the past decade," he said. "While trading has suffered in the recession, new hotels are continuing to open, reflecting the long-term viability of the sector."
Since 1993, the number of branded budget hotel rooms in the UK has grown more than ten-fold, increasing from 10,555 rooms to 109,528 rooms by the end of 2009.
However, the sector has not been immune to the recession. During 2009, revenue per available room fell by 9.1%, with occupancy dropping by 5.9% to 67.8%. Room rates held up better, with a fall of only 1.1% to £50.97.
The most successful challenger to the top two brands is Holiday Inn Express, which now has 108 hotels with 12,438 rooms.
The 40-page Budget Hotels 2010 UK report costs £995 plus VAT and is available from Hotel Analyst at www.hotelanalyst.co.uk.
By Janet Harmer
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