Modest growth will continue, says report
Hospitality can expect sustained but modest growth over the next few years, says a new report from researcher Market & Business Development (MBD). But it predicts that more UK nationals will be travelling abroad, while the strong pound will mean fewer foreign visitors.
On the plus side, MBD believes that demand will grow for short-stay weekend accommodation while business travel from both UK and foreign operators will increase.
It forecasts that the number of independent hotels (which currently account for 88% of the UK's 22,075 hotels) will fall by 4% between now and 2004, while the number belonging to chains will grow by 20%.
The most prolific growth will be seen among budget chain hotels, where bedroom numbers will increase from 35,000 to 75,000 by 2004.
Despite predictions that Europe will follow the route of considerable consolidation seen among US hotels, MBD argues that Europe's more fragmented market, along with the age and condition of much of the hotel stock, and the lesser significance of branding, will inhibit mergers and acquisitions here.
- The 92-page UK Hotels Market Development report is available for £395 by calling MDBon 0161-247 8600.
