Budget branded hotels are leading the growth in the UK hotel sector, with global brands overtaking the independent majority ownership, according to new research.
Growth in the budget chains has increased more than 20% in the last decade, with 580 hotels opening up 58, 612 rooms at a tune of GBP3.3 billion. This made up nearly a third of the GBP9.74bn spent on UK hotel construction from 2003 to 2012.
Nearly 100 (97) midscale hotels have opened adding 16, 880 rooms in the last 10 years, followed by an extra 14, 609 full service rooms and 5, 868 independent rooms within 139 properties.
While 51.8% of the current 730,000 rooms in the UK are part of independent and unbranded hotels, Melvin Gold Consultancy has predicted this will sway in the favour of global brands in the next 10 years.
Almost 40,000 hotel rooms were thought to have closed in the UK in the last decade, although 103, 612 rooms have opened up meaning growth generally across the country.
Hotels in Cornwall, Blackpool, Torbay, Bournemouth and the Isle of Wight are said to have suffered the most, while London boroughs have balanced out the closures with a string of new openings.
Westminster, Kensington and Chelsea were cited as London areas that saw the largest amount of rooms close, although the areas have since seen a resurgence in new hotels particularly Westminster.
“We have found hotels changing use to residential accommodation, care homes, and student accommodation or being demolished to facilitate new development. It is important to note that it does not herald the end of the independent hotel, provided they are well-invested and market focused. I still expect them to comprise up to 40% of the future UK hotel market, but the majority of UK hotels will be branded within the next decade,” said Gold.
He further predicted there will be more than 850,000 rooms in the UK by 2030.