UK budget hotel sector set to treble by 2027

12th December 2007, 10:56am

The budget hotel sector is set to treble by the year 2027, growing by up to 10 times faster than the rest of the hotel industry, said hotel experts Melvin Gold Consulting.

The study, commissioned by Travelodge, recorded the total number of accommodation rooms in the UK at 716,000, with the budget sector accounting for 12% of the market (with 85,665 rooms).

In the next 20 years, the sector is expected to grow to 225,400 rooms, representing 26.8% of the market.

Figures also show that the total hotel market is forecasted to grow by around 1% in each year for the next two decades, with the budget sector growing at 10% for the next five years, and 5% for the following five years.

Grant Hearn, chief executive officer of Travelodge, said: "The budget sector is the engine room of the hotel industry and the phenomenal growth reflects the consumer's desire for the no frills approach. Budget hotels are successfully taking the hotel industry into the mass market."

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