Quantification of serviced accommodation supply in the United Kingdom and consideration of related issues

Melvin Gold Consulting Ltd. has prepared a report on behalf of our clients Travelodge which explores the current situation of serviced accommodation supply in the United Kingdom. Travelodge have kindly agreed to make this research available in the public domain.

Highlights are:

• Based on our research and review of the sector as described and discussed in this report, it is our view that currently there are approximately 716,505 rooms in the UK at present, comprising approximately 1,488,499 beds.

• We have uncovered data which reliably quantified UK hotel supply at 497,502 rooms in 1974. If we consider that as a fixed data point and set this against our view of 2007 supply this implies a compound annual growth (CAG) of 1.111% across the 34 year period. Given that we have additionally included Youth Hostels in our supply base, the actual like-for-like figure would be slightly lower.

• From our research we believe that some 38.1% of UK serviced accommodation might be considered as branded, the remainder being Independent (61.9%). Our database identifies 12.1% of accommodation as being in the branded Budget sector, 13.7% as Full Service and 12.3% as Mid-Market. Of course in reality the Mid-Market is the largest sector because most of the Independent supply would also fall within the mid-market definition. Our report also contains regional analysis and data for the largest cities.

• We have constructed a scenario for the UK hotel industry over the next two decades which envisages supply growth at a compound rate of around 1% initially, and subsequently around 0.75%. On a compound basis we also envisage the budget sector growing by some 10% in the next 5 years, approximately 5% in the subsequent 5 years and 2.5% in the decade after that. This would see total supply reach 842,219 rooms in 2027, with some 225,400 of these rooms being in the budget segment. Thus the budget segment would reach some 26.8% of total supply in 2027.

To download the full report , click here

To download the accompanying press release, click here

Future updates

MGCL, supported by our client Travelodge, intend to update this report from time to time (in whole or in part) and such updates will similarly be made widely available. We are therefore happy to receive any updated or additional data from interested and involved parties in order to accurately portray the size, importance and prospects for the UK hotel industry. Please e-mail any additional or updated data to melvin.gold@melvingoldconsulting.com.