In the Spotlight > Hotel Trends

Budget hotel market most dynamic in industry

By Becky Paskin , 03-Mar-2011

Related topics: Business, Trends & Reports, Hotel Trends, Hotels

The branded budget hotel sector grew at a rate of one hotel a week during 2010, making it the most dynamic segment of the UK hotel industry.

Travelodge was the fastest growing budget hotel brand in 2010

Travelodge was the fastest growing budget hotel brand in 2010

According to the latest Budget Hotels Report 2010 from HotStats and Hotel Analyst, a total of 54 new budget hotels were opened last year, creating 5,446 new rooms.

Travelodge was the fastest growing budget hotel chain during the year, having added 3,833 rooms to its portfolio in its bid to become the largest budget hotel operator in the capital by the 2012 London Olympic Games.

But despite its rapid growth rate, Travelodge’s 27 per cent market share was dominated by competitor Premier Inn’s 37 per cent, despite the latter only expanding by 1,043 rooms by the year end.

Holiday Inn Express, the UK’s third largest brand, added just 540 rooms to its estate, reducing its market share to 11 per cent.

Cheaper hotel rooms

The report also showed that revPAR for branded budget hotels rose by an average of 4.7 per cent for the year, despite a decline in room rate of 1.0 per cent to £50.33. Occupancy however improved by 3.9 per cent to 71.6 per cent.

Hotels situated in London saw revPAR increase by 12.1 per cent for the year, in contrast to those outside the capital which saw revPAR rise by 2.9 per cent.

BigHighlights

Mark Poynton: Pearls of Wisdom

Mark Poynton: Pearls of Wisdom

The British chef-patron of the Michelin-starred Alimentum and star of Great British Menu Mark Poynton talks about...

Interview with Glendola Leisure's Alexander Salussolia
Small Talk

Alexander Salussolia on Silk & Grain, market niches and nurturing future talent

Managing director of Glendola Leisure Alexander Salussolia joined the company in 1992 as an area manager, before...

60-Second Skill: Using #foodporn to your advantage

60-Second Skill: Using #foodporn to your advantage

Customers posting pictures of your food on social media is a trend you can't escape, but by...

Gallery: the UK’s first experiential craft brewery Drygate Brewing Co.

Gallery: the UK’s first experiential craft brewery

New Glasgow venture Drygate Brewing Co. claims to be the UK’s first experiential craft brewery, offering a...

Hospitality Openings: June 2014

Hospitality Openings: June 2014

Our latest round of up of the hottest hospitality openings includes Heston Blumenthal’s Heathrow venture The Perfectionists’ Café,...

60-Second Skill: Pouring champagne

60-Second Skill: Pouring champagne

As demonstrated at the Moet UK Sommelier of the Year competition, champagne pouring requires skills and knowledge....

Find us on Facebook

Digital Edition - Restaurant Magazine

Access to the Restaurant Magazine digital edition