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11 May 2017, London: Budget hotels now account for nearly two-thirds of the UK’s top 10 brands as global hotel companies continue to diversify from their traditionally more upmarket offerings to the ever-popular budget sector.

According to Hotel Bulletin Q1 2017, published this week by HVS, AlixPartners, STR and AM:PM, Premier Inn and Travelodge between them account for 52% of all branded rooms in the UK’s top 10 and are also the most active in terms of future growth.

The Bulletin compares the list of the UK’s top 10 hotel brands in terms of room numbers with the top 10 in terms of new rooms pipeline. It finds that Premier Inn, the largest in terms of room numbers with 67,515, and Travelodge, number two with 39,531, also represent almost half of the UK’s active hotel pipeline with 5,086 and 2,660 rooms planned respectively.

In third place in terms of supply is Holiday Inn, with 20,707 rooms but a pipeline of only 430, while fifth-placed Hilton (14,793) has only 200 rooms in its development pipeline.

Overall, it is the emerging brands that have amongst the most aggressive opening plans such as Hampton by Hilton (active pipeline of 1,881 rooms), Hub by Premier Inn (1,396) and Holiday Inn Express (1,244).

“Only six brands have an active pipeline of more than 1,000 rooms and all are at the budget end of the market as the smaller budget brands continue their relentless drive for greater distribution whilst the two giants slug it out to maintain their growth trajectories, “ commented HVS chairman Russell Kett.

“Whilst attention is clearly focused on developing other IHG and Hilton brands, and growth by rebranding existing hotels is not included in this analysis, it begs the question as to whether the ‘core brands’ are in danger of stagnating if nothing is done to address this,” he added.

“However, as many rooms as are being actively developed remaining currently on the drawing board, there is potentially healthy future growth in supply as time progresses and planned projects become firmer,” he concluded.

Download the Hotel Bulletin: Q1 2017 containing the full top 10 lists.

About HVS

HVS, the world’s leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries, was established in 1980. The company performs 6,000+ assignments each year for hotel and real estate owners, operators, investors, banks and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of some 40 offices and more than 350 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry.

Contact: Russell Kett, Chairman, HVS London / +44 (0) 20 7878 7701

Contact: Linda Pettit / +44 13 4283 2866

About the HVS, AlixPartners, STR and AM:PM Quarterly Hotel Bulletin

The Hotel Bulletin analyses demand, supply, pipeline and transactions in the hotel market in 12 cities across the UK. The information contained in this Press Release sets out a summary of the information contained in the Hotel Bulletin and should be read with and is subject to the terms, limitations and assumptions contained in the Hotel Bulletin.

About AlixPartners

In today’s fast paced global market timing is everything. You want to protect, grow or transform your business. To meet these challenges we offer clients small teams of highly qualified experts with profound sector and operational insight. Our clients include corporate boards and management, law firms, investment banks, investors and others who appreciate the candor, dedication, and transformative expertise of our teams. We will ensure insight drives action at that exact moment that is critical for success.

About AM:PM

AM:PM is a leading source of market intelligence on the UK & Ireland hotel industry. We maintain extensive data relating to hotel supply to help clients gain a comprehensive and unrivalled understanding of the size and structure of the hotel industry.

We offer a suite of subscription-based online products that allow clients to search, analyse and benchmark the hotel sector. This includes access to a unique hotel database with details of over one million hotel rooms covering the past, present and future hotel supply throughout the UK & Ireland.

We’re serious about hotels, AM:PM.

About STR

STR is the source for premium global data benchmarking, analytics and marketplace insights. Our data is confidential, reliable, accurate and actionable. Our comprehensive solutions, analytics and unrivalled marketplace insights are built to fuel growth and help our clients make better business decisions. For further information, please visit, email or call +44 (0) 207 922 1930.

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