UK hotel market set for moderate growth during next five years

06 December 2006 by Chris Druce

The UK hotel market is set to continue growing over the next five years allaying fears of a slowdown, according to research firm Market & Business Development (MBD).

Estimated to hit a value of £9.5b in 2006, the popularity of short breaks and the rise of budget hotels and airlines is expected to drive growth, albeit at moderate levels.

From 2007 to 2011, MBD is expecting overall growth of 8% in real terms, which will take the value of the market to £10.3b at 2006 prices.

MBD said hotel growth in the North-west of England is likely to be strong, especially around Liverpool, which celebrates European Capital of Culture status in 2008, and has a number of high-profile hotel developments such as Malmaison, RopeWalk and Staybridge underway.

It also predicted visitors from the rest of the world (China, India, Eastern Europe and South-east Asia), which are already outpacing many of the UK's traditional markets, would become ever more important.

At a panel discussion at the British Association of Hospitality Accountants conference in London last month a panel of industry experts warned "unsustainable" and "ludicrous" loan rates and business plans could threaten the future prosperity of the UK hotel market.

MBD's full report, price £550, is available at www.mbdltd.co.uk

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