Hotel and Resort Market in the UK – Size, Forecast, and Competitive Landscape: Explore DCI Advisors’ UK Potential

Market Outlook: Hotel and Resort Market in the UK 2025-2029

The hotel and resort market in the UK is experiencing recovery and growth, driven by increasing domestic tourism, a resurgence in international visitors, and rising demand for unique and luxury accommodations, alongside a strong emphasis on sustainability and innovative guest experiences. The market is expected to grow by USD 6-8 billion at a CAGR of 2%-4% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. Key companies engaged in this market include:

• Colliers International
• Knight Frank
• JLL Hotels & Hospitality Group
• Others

IPO Company Overview: DCI Advisors in the UK hotel and resort market

DCI Advisors Ltd. is set to launch on the AIM market of the London Stock Exchange in January 2025 under the ticker symbol DCI, creating a new opportunity for investors. DCI Advisors is a high-end residential resort investor specializing in the acquisition, development, and management of luxury resort properties across prime global locations. With a focus on offering exclusive, bespoke experiences, DCI Advisors creates distinctive, high-quality residential resorts that cater to affluent individuals seeking unparalleled comfort and luxury.

Market Segmentation: How is the UK hotel and resort market segmented?

Type

• Hotels
• Resorts

Price Range

• Budget
• Midrange
• Luxury

Investment Opportunities: Why explore the UK hotel and resort market with Technavio?

Recent developments in the UK hotel and resort market have been driven by a strong recovery in domestic tourism, as well as the gradual return of international visitors following the pandemic. Luxury and high-end resorts have seen a resurgence in demand, particularly from affluent travelers seeking private, exclusive experiences. This has led to an increase in the development of boutique hotels, countryside retreats, and luxury resorts offering bespoke services and wellness-focused amenities.

With the growing trend of hybrid work arrangements, some hotels are embracing co-working spaces and longer stays to cater to business travelers and remote workers. This shift towards flexibility and modern amenities is helping the UK hotel and resort market adapt to changing traveler preferences and emerging global travel trends.

Market Dynamics: What factors are influencing the hotel and resort market in the UK?

Drivers

The hotel and resort market in the UK is primarily driven by a strong rebound in both domestic and international tourism following the pandemic. Increasing disposable incomes, a robust UK economy, and a rising appetite for luxury and unique travel experiences also fuel demand. Additionally, the rise of experiential travel, including wellness retreats and eco-friendly accommodations, has become a key driver for resorts and hotels, with many travelers seeking destinations that offer both luxury and sustainability. The UK’s strong cultural and historical attractions continue to attract visitors, while the rise in staycations post-pandemic has further boosted the domestic market.

Trends

Several trends are shaping the UK hotel and resort market, including an increased focus on sustainability, with hotels adopting green building certifications, energy-efficient practices, and sustainable sourcing. Luxury properties are embracing wellness tourism, offering services such as spas, fitness centers, and mindfulness retreats. Additionally, technology is playing a key role, with hotels integrating advanced booking systems, mobile check-ins, and personalized guest experiences. The trend of "bleisure" (business and leisure) travel is also on the rise, with more travelers blending business trips with leisure stays, leading to an increase in demand for flexible accommodations and co-working spaces in hotels.

Opportunities

The UK hotel and resort market offers various opportunities, particularly in the luxury and boutique hotel segments, as affluent travelers seek exclusive, personalized experiences. There is also growing potential in the development of sustainable resorts and eco-friendly hotels to cater to the increasing demand for responsible travel. Rural and countryside resorts are gaining popularity as part of the staycation trend, presenting investment opportunities in underdeveloped or lesser-known locations. Additionally, the growing trend of hybrid and remote working opens new possibilities for long-term stays and co-working spaces within hotels, allowing businesses to cater to a broader customer base.

Challenges

Despite the positive outlook, the UK hotel and resort market faces several challenges, including rising operational costs driven by inflation and staff shortages, particularly in hospitality roles. The increasing demand for sustainable practices requires significant investment in eco-friendly infrastructure, which can be a barrier for some operators. Furthermore, competition from short-term rentals such as Airbnb continues to put pressure on traditional hotel operators, forcing them to adapt and innovate to maintain market share. Lastly, uncertainties related to global economic factors, such as Brexit and inflation, may affect both domestic and international travel demand, posing risks for long-term growth in the sector.

Investment Questions: Topics to consider when investing in the hotel and resort market in the UK

How does the economic environment impact the hospitality industry?
Factors such as inflation, interest rates, and economic growth will influence both the cost of investment and the potential return, affecting the overall profitability of hotel and resort properties.

What is the competitive landscape in the region?
Analyzing the level of competition in the target market, including the presence of other hotels, resorts, and alternative accommodation options like Airbnb, helps identify the potential for differentiation and profitability.

What is the property's sustainability and environmental performance?
With increasing demand for eco-friendly accommodations, investors should consider how well a property aligns with sustainability trends, including energy efficiency, waste management, and green certifications.

What are the risks associated with the property market, such as regulatory changes or zoning issues?
Examining local regulations, building codes, and potential changes to tourism-related policies can help mitigate legal or compliance risks that might impact the profitability of the investment.

For a detailed analysis of the hotel and resort market in the UK, buy the full report

Technavio Report Insights: How Can Technavio Reports Help Investors Make Better Business Decisions?

Key Features of a Technavio Report: 

• Comprehensive Market Analysis: Provides a detailed overview of the hotel and resort market in the UK, including market size, growth rate, segmentation, and regional analysis. 

• In-Depth

  Competitive Landscape:

  Offers insights into the competitive dynamics, market share and positioning, and product offerings of key players. 

• Future Market Trends: Identifies emerging trends and opportunities that can shape the future of the market. 

• Detailed Segmentation: Breaks down the market into various segments to help investors identify specific niches and target markets. 

• Expert Analysis: Provides expert insights and forecasts from industry analysts

FAQ

1. How has the UK hotel and resort market recovered post-pandemic?
The UK hotel and resort market has shown strong recovery post-pandemic, driven by a surge in domestic tourism and the gradual return of international visitors. Staycations have been particularly popular, with many travelers opting for local destinations. The luxury and boutique hotel sectors have seen a resurgence, while budget hotels continue to attract steady demand, particularly from business travelers and those seeking affordable options.

2. What are the key factors influencing hotel and resort demand in the UK?
Key factors influencing demand include economic conditions, consumer travel preferences, and local attractions. The UK's cultural and historical sites, as well as major events, play a significant role in driving tourism. Additionally, the growing trend for sustainable travel, wellness retreats, and unique, bespoke experiences are increasingly shaping demand for hotel and resort accommodations.

3. How important is sustainability in the UK hotel and resort sector?
Sustainability is becoming increasingly important in the UK hotel and resort market. Consumers are more aware of the environmental impact of their travel, prompting hotels to adopt energy-efficient practices, use sustainable building materials, and reduce waste. Many guests now prefer to stay in properties with green certifications, making sustainability a competitive differentiator for hotel operators.

4. What are the most popular regions for hotel and resort investments in the UK?
Popular regions for hotel and resort investments include London, which remains a key international destination, and areas with scenic beauty, such as the Lake District, Cornwall, and Scotland's Highlands. Coastal regions and cities with strong tourism offerings, like Manchester, Edinburgh, and Brighton, also present attractive investment opportunities due to their year-round appeal.

5. What types of guests are driving demand in the UK hotel and resort market?
Demand in the UK hotel and resort market is driven by both domestic and international travelers, including luxury tourists seeking unique and exclusive experiences, business travelers requiring flexible accommodations, and budget-conscious visitors who opt for affordable hotel chains. Additionally, the rise of "bleisure" travel, where business trips are combined with leisure activities, has further shaped guest profiles.

Table of Contents

1 Executive Summary

• 1.1 Market overview
  • Executive Summary - Chart on Market Overview
  • Executive Summary - Data Table on Market Overview
  • Executive Summary - Chart on Global Market Characteristics
  • Executive Summary - Chart on Market by Geography
  • Executive Summary - Chart on Market Segmentation
  • Executive Summary - Chart on Incremental Growth
  • Executive Summary - Data Table on Incremental Growth
  • Executive Summary - Chart on Company Market Positioning

2 Technavio Analysis

• 2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

• 2.2 Criticality of inputs and factors of differentiation
  • Overview on criticality of inputs and factors of differentiation

• 2.3 Factors of disruption
  • Overview on factors of disruption

• 2.4 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

3 Market Landscape

• 3.1 Market ecosystem
  • Parent Market
  • Data Table on - Parent Market

• 3.2 Market characteristics
  • Market characteristics analysis

• 3.3 Value chain analysis
  • Value chain analysis

4 Market Sizing

• 4.1 Market definition
  • Offerings of companies included in the market definition

• 4.2 Market segment analysis
  • Market segments

• 4.3 Market size 2024

• 4.4 Market outlook: Forecast for 2024-2029
  • Chart on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Data Table on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Chart on Global Market: Year-over-year growth 2024-2029 (%)
  • Data Table on Global Market: Year-over-year growth 2024-2029 (%)

5 Historic Market Size

• 5.1 Global Market 2019 - 2023
  • Historic Market Size - Data Table on Global Market 2019 - 2023 ($ billion)

• 5.2 Segment Analysis 2019 - 2023
  • Historic Market Size – Segment Analysis 2019 - 2023 ($ billion)

• 5.4 Geography segment analysis 2019 - 2023
  • Historic Market Size - Geography Segment 2019 - 2023 ($ billion)

6 Qualitative Analysis

• 6.1 Impact of AI on the Global Market

7 Five Forces Analysis

• 7.1 Five forces summary
  • Five forces analysis - Comparison between 2024 and 2029

• 7.2 Bargaining power of buyers
  • Bargaining power of buyers - Impact of key factors 2024 and 2029

• 7.3 Bargaining power of suppliers
  • Bargaining power of suppliers - Impact of key factors in 2024 and 2029

• 7.4 Threat of new entrants
  • Threat of new entrants - Impact of key factors in 2024 and 2029

• 7.5 Threat of substitutes
  • Threat of substitutes - Impact of key factors in 2024 and 2029

• 7.6 Threat of rivalry
  • Threat of rivalry - Impact of key factors in 2024 and 2029

• 7.7 Market condition
  • Chart on market condition - Five forces 2024 and 2029

8 Market Segmentation

• 8.1 Market segments
  • Chart on Segmentation - Market share 2024-2029 (%)
  • Data Table on Segmentation - Market share 2024-2029 (%)

• 8.2 Segment Comparison
  • Chart on Comparison
  • Data Table on Comparison

• 8.3 Segment Market Opportunity
  • Market opportunity ($ billion)
  • Data Table on Market Opportunity ($ billion)

9 Customer Landscape

• 9.1 Customer landscape overview
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

10 Geographic Landscape

• 10.1 Geographic segmentation
  • Chart on market share by geography 2024-2029 (%)
  • Data Table on market share by geography 2024-2029 (%)

• 10.2 Geographic comparison
  • Chart on Geographic comparison
  • Data Table on Geographic comparison

• 10.3 Market opportunity by geography
  • Market opportunity by geography ($ billion)
  • Data Tables on Market opportunity by geography ($ billion)

11 Drivers, Challenges, and Opportunity/Restraints

• 11.1 Market drivers

• 11.2 Market challenges

• 11.3 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

• 11.4 Market opportunities/restraints

12 Competitive Landscape

• 12.1 Overview

• 12.2 Competitive Landscape
  • Overview on criticality of inputs and factors of differentiation

• 12.3 Landscape disruption
  • Overview on factors of disruption

• 12.4 Industry risks
  • Impact of key risks on business

13 Competitive Analysis

• 13.1 Companies profiled
  • Companies covered

• 13.2 Company ranking index
  • Company ranking index

• 13.3 Market positioning of companies
  • Matrix on companies position and classification

14 Appendix

• 14.1 Scope of the report

• 14.2 Inclusions and exclusions checklist
  • Inclusions checklist
  • Exclusions checklist

• 14.3 Currency conversion rates for US$
  • Currency conversion rates for US$

• 14.4 Research methodology
  • Research methodology

• 14.5 Data procurement
  • Information sources

• 14.6 Data validation
  • Data validation

• 14.7 Validation techniques employed for market sizing
  • Validation techniques employed for market sizing

• 14.8 Data synthesis
  • Data synthesis

• 14.9 360 degree market analysis
  • 360 degree market analysis

• 14.10 List of abbreviations
  • List of abbreviations