--- title: The UK Hotels Market date: 2018-09-23T11:04:00+01:00 author: Ellie Kyle canonical_url: "https://assetsure.beebo.co.uk/business/hotel-insurance/uk-hotels-market/" section: News --- Our Customers Love Us! Hotel Insurance [Trustpilot](https://uk.trustpilot.com/review/assetsure.com) ### Get a Quote. Choose from our range of insurances below [Home](/) › [Business Insurance](https://assetsure.beebo.co.uk/business/) › [Hotel Insurance](https://assetsure.beebo.co.uk/business/hotel-insurance/) › [The UK Hotels Market](https://assetsure.beebo.co.uk/business/hotel-insurance/uk-hotels-market/) # The UK Hotels Market There are no government statistics for the hotel industry. However according to the British hospitality Association there are over 20,000 hotels, bed and breakfasts’ and guesthouses in the United Kingdom officially registered with local tourist boards. This could increase to approximately 60,000 by including the hotels, and breakfasts and guesthouses that are not officially registered. On average they contain 20 rooms and collectively have a total turnover of around £27 billion a year. Centred around London the industry has enjoyed decades of organic growth both in terms of the number of establishments, occupancy rates and industry employment. The major conurbations of the UK provide the greatest concentration of hotels supporting business activity such as conferences, access to major international transport links, major sporting events and regional commuter routes. The economic conditions of the country strongly affect the occupancy levels which have remained between 60% and 70% the last 20 years. Falling occupancy rates have reduced the yield per room down to around £60 in regional areas and around £130 in London. In 2008 and 2009 the credit crunch has forced hoteliers to reduce rates to compete and survive. Other major factors that impact occupancy rates are international sporting events such as the Commonwealth games, major football tournaments and the imminent London Olympics 2012. Threats to people and businesses have also deterred international travellers from flying to London to stay in London hotels such as the 2001 terrorist attacks in New York and more recently bird flu and swine flu outbreaks. Similarly the London bombings of 2003 had a direct impact on hotel bookings particularly in major tourist areas such as London Theatre land. Despite these terrible events demand for hotel rooms remains buoyant and have in the past tended to bounce back following a period of stability. Outside of the major cities there are tens of thousands of smaller family run bed-and-breakfast accommodations providing places to stay for holidaymakers in notable popular hotspots in the South West, the Peak District, Scotland and seaside resorts. In the middle of a recession families are choosing not to pay for flights to overseas destinations and instead take their holidays in the United Kingdom. This has led to a surge in popular seaside tourist destinations directly benefiting small bed-and-breakfast and guesthouse bookings. Other prominent concentrations of establishments are closely linked to major industrial locations such as oil refineries, oil rigs and major ports (where the movement of people to and from those locations require short term accommodation). In the United Kingdom the major hotel brands include Whitbread (who owns Premier Travel Inn), Travelodge (the budget hotel chain) and Intercontinental Hotels Group (who own among other brands the Holiday Inns and Holiday Express chains). The structure of the luxury end of the market is also targeting activities such as health spas and golfing resorts and in the last few years has seen many creative promotions linked to reward points on credit cards, Air Miles and other cross selling opportunities. The mid range market (consisting of three star and four-star ordinary hotels) is now tending the struggle in 2009 as it has confused selling points. They are losing out to both the budget chains and luxury market (which have clearly defined markets where guests have strong buying motives and see simple benefits). Mid-range hotels are sometimes perceived as.a bit pricey for a short weekend break. Or alternatively ‘a bit old than tired looking’ for someone who wants to splash out and have a bit more of a luxury stay. The hotel industry has seen lots of private investment activity recently including sale and leaseback deals from venture capital and private equity funds. Despite the collapse of general commercial property values the demand for hotel rooms has remained generally consistent providing a level of comfort and security for potential investors. The return on investment for investors may not be as exciting as high-tech industry sectors but hotels do provide a greater degree of predictability (which is becoming more and more sought-after by nervous overseas investors). The lack of ground level liquidity for struggling smaller hoteliers has had the impact of restricting investments in building extensions, redecorations and recruitment of temporary staff. The industry employs many part-time workers including other workers from across the European Union. However rising living costs and falling wages is seeing a slowing in the number of these types of workers available to work across the major hotel groups. ## Latest News & Advice [![Why Start a Hotel Business](https://assetsure.beebo.co.uk/actions/assets/generate-transform/?transformId=54)](https://assetsure.beebo.co.uk/business/hotel-insurance/hotels-why-start-a-hotel-business/) ### [Why Start a Hotel Business](https://assetsure.beebo.co.uk/business/hotel-insurance/hotels-why-start-a-hotel-business/) If you have a dream to start up an accommodation related business you should first ask yourself some difficult questions about the type of person you are and your potential ability to run a successful hotel rental business. This article summarises some of the characteristics and traits of a successful hotel owner and aims to help prospective owners of hotels, guest houses and bed and breakfasts think about the key issues involved.... [![Hotels Running](https://assetsure.beebo.co.uk/actions/assets/generate-transform/?transformId=54)](https://assetsure.beebo.co.uk/business/hotel-insurance/hotels-running/) ### [Hotels Running](https://assetsure.beebo.co.uk/business/hotel-insurance/hotels-running/) This articles summarises some of the many practical aspects of running a successful hotel. Running a successful hotel the first time involves a series of organised routines and work practices. When taking over a hotel form a buyer, implementing practical changes for the first few days of trading is essential.... [![Raising Finance to Buy a Hotel](https://assetsure.beebo.co.uk/actions/assets/generate-transform/?transformId=54)](https://assetsure.beebo.co.uk/business/hotel-insurance/raising-finance-to-buy-a-hotel/) ### [Raising Finance to Buy a Hotel](https://assetsure.beebo.co.uk/business/hotel-insurance/raising-finance-to-buy-a-hotel/) If you have already made the emotional leap towards starting up the hotel business and have challenged your initial motivations and underlying reasons for starting at the hotel the next step is to work out how much start-up capital you will need.-People will need to borrow money in the form of a commercial mortgage if they do not have an existing property to sell or capital of their own in savings.... [More News](https://assetsure.beebo.co.uk/news) ## Why choose our specialist insurance cover? ### Lloyd's of London coverholders We hold prestigious Lloyd’s of London cover holder status where most of our policies are underwritten. 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