Premier Inn remains the largest UK hotel brand as 24,000 bedrooms set to open before 2018

14 April 2016 by
Premier Inn remains the largest UK hotel brand as 24,000 bedrooms set to open before 2018

More than 24,000 additional hotel bedrooms are expected to open in the UK during 2016 and 2017, according to statistics from business advisory and accountancy firm BDO.

Hotel Britain 2016, an annual report by BDO on UK hotel performance, reports that branded hotels will account for the majority of new supply.

"UK supply has experienced significant changes over the past decade and a continuing rise in preference for branded hotels against independent properties has been observed," the report states.

"Certainly the larger and recognised hotel brands have more ability to respond to the current trends in the hotel industry such as the emergence of home sharing sites or the rise of OTAs. Midscale hotels have particularly suffered from the emergence of home sharing options."

Whitbread, owner of the Premier Inn brand, remains the largest group by bedroom count in the UK with 60,990 rooms by the end of 2015. InterContinental Hotels Group is in second place with 42,732 rooms, followed by Travelodge (37,614), AccorHotels (29,210) and Hilton Worldwide (26,852).

Meanwhile, Hotel Britain 2016 records that regional hotels outperformed their London counterparts in occupancy and room rates last year.

Rooms yield outside London increased by 5.1% compared with 1.1% by hotels in the capital. Average room rate (ARR) increased by 4% and occupancy by 1.1% in the regions, compared with just 0.9% and 0.2% respectively in London.

Overall, ARR across the UK grew by 4.6% to £95.80 against a modest rise in occupancy of 1%.

Budget hotels was the highest performing sector, with an increase of 7.5% in rooms yield in London and 14% in the regions, as price-conscious guests continue to search for good value deals.

Robert Barnard, partner at BDO, said: "The UK hotel sector has performed well again in 2015 and regional hotels continue to outperform London although at a slower rate compared to the previous year.

"With GDP expected to grow by 2%, we remain confident for another positive industry performance this year. However, there will be many challenges in 2016 including the impact of a strong pound and the newly introduced National Living Wage, not to mention the outcome of the Brexit referendum and the US election result.

"Despite these, and a lack of major sporting events to boost footfall and spending, we remain positive. With VisitBritain predicting the number of UK visits to increase by 3.8% to 36.7m and visitor spending to reach £22.9m (up 4.2% on 2015), we have much to look forward to."

Budget hotels dominate list of top 20 hotel companies >>

Hotel supply outpaces demand in London hotels >>

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