The UK budget hotel sector is set to treble by 2027 and drive growth in the hotel market, new research suggests.
A report by research company Melvin Gold Consulting predicts that a budget hotel will be built, opened or converted every three working days for the next 20 years.
The budget sector currently makes up 12% of the market and is expected to constitute 26.3% by 2027. In recent years, budget hotels have moved into city centres and increased in size as public awareness has grown.
The build up to the London Olympics in 2012 and consumers’ awareness of their carbon footprint will also contribute to the success of the sector, said the report.
Growth will be driven by the top four brands: Premier Travel Inn, Travelodge, Express by Holiday Inn and Ibis.
The accommodation industry will become more branded, consolidated and of more consistant quality. However, this growth could be hampered by current planning processes.
Travelodge CEO Grant Hearn said: “The budget sector is the engine room of the hotel industry and the phenomenal growth reflects the consumer’s desire for the no frills approach. This is driving the unbranded tatty hotels and guest houses out of the market.”
The UK hotel supply report, commissioned by Travelodge, analysed the 729,000 hotels rooms in the UK from July to September this year.