Since 2008, the UK budget hotel market has grown by 35%, added 20,000 rooms and is now set to squeeze out independent and mid-market brands by 2030. These are the findings of a new study into the hotel market by Melvin Gold Consulting that looks at future trends within the hotel industry.

In spite of the economic downturn in the last three years, where many industries were badly hit, the UK branded budget hotel sector has thrived and supply has grown by 35%. Market share of branded budget accommodation has accelerated from 12% (end of 2007) to 16% of rooms in the UK serviced accommodation sector.

This increase has been predominately dominated by Travelodge and Premier Inn, who have opened hundreds of new hotels across the UK via new developments, acquisitions and conversions of run-down independent and mid-market hotels.

The second UK serviced accommodation supply study commissioned by Travelodge, is the most comprehensive and accurate assessment of hotel supply in the UK. Findings revealed the total number of serviced bedrooms in the UK at present stands at 729,000 with the budget sector currently at 115,000 – an increase of 35% from 2007 when total budget rooms was 85,665.

The UK at only 16% share remains a growing market for branded budget accommodation. However it is well behind matured markets such as the USA (which has 33%) and France (which has 25%) of branded budget accommodation supply.

Key findings from this latest hotel supply report confirm that the size of the growth opportunity is larger than originally forecast in 2007 for the UK branded budget hotel sector. Under the scenario developed by Melvin Gold Consulting, by 2030 the UK serviced accommodation sector will reach a total of 856,750 rooms with around 225,000 of these rooms being in branded budget hotels. This would increase the branded budget market share to 26%. The segment’s growth is expected to be fuelled via new development, acquisition and conversion of independent and mid-market hotels which no longer satisfy consumer requirements.

The report also acknowledges that a number of poor quality and outdated hotels will close, as a direct result of branded budget hotels being required by 21st century travellers.