Hotel Owner August 2018 | Page 10

MONTH IN REVIEW MONTH IN REVIEW www.hotelowner.co.uk PROPERTY UK hotel sector sees 37% rise in new-build hotels The UK hotel industry saw 15,200 new hotel rooms opened in 2017, a 2.4% growth in the UK hotel supply with the proportion of new-build hotels increasing by 37%. The research, by property consultants and agents Knight Frank, also found that 21,000 new rooms are scheduled to open in 2018, representing a 3.3% growth in the UK hotel market. The annual UK Hotel Development Opportunities 2018 report discovered that the budget hotel sector represented 69% of all new build hotel stock and 65% of all hotel extensions, with some 8,300 new branded budget hotel rooms planned to open in 2018. Knight Frank also expects the growth in 2018 of the four-star and serviced apartment sectors, equating to some 8,500 rooms, is set to challenge the market share of new rooms in the budget sector, falling to around 39% of the total new bedroom stock in 2018. The branded budget sector, however, is set to continue to grow its market share, accounting for over 25% of the UK hotel supply. London saw a 70% increase in new build hotel openings, with over 4,100 new build rooms opening, fuelling this growth has been the strong rise of budget hotel rooms in the capital, which account for 67% of all new build bedroom stock. Additiona