The United Kingdom’s hotel market is as large as it is varied. While the UK is home to some world-renowned names such as the Ritz Hotel, Claridge’s, and the Savoy, it is easy to be blindsided by the glamour of the UK’s luxury hotel institutions. In reality, it is limited-service hotel chains that have claimed the biggest place in the nation’s heart, with Premier Inn and Travelodge regularly ranking as the
. Price undoubtedly plays a major role here, with both chains having some of the most cost-effective
. Besides budget chains and luxury establishments, there are also thousands of independent, smaller-scale businesses in the UK’s hotel industry, with the
Where are hotel prices most expensive in the UK?
As the economic and cultural epicenter of the UK, it comes as no surprise that London’s hotels have the
highest average price per night among the UK’s larger cities. As of April 2024, a night in a London hotel cost an average of 158 British pounds, while Edinburgh hotels charged an average of 152 British pounds; these two cities also consistently rank as the
leading UK cities by inbound visits. In contrast, the average nightly room rates in cities such as Aberdeen, Hull, and Milton Keynes were under 80 British pounds. The divide between the capital and the rest of the country is even starker when considering the
revenue per available room (RevPAR) of London hotels was over 100 percent higher in the second quarter of 2024 when compared to the
RevPAR of UK hotels outside of London.
What is the future of the UK’s hotel industry?
After having recorded an impressive recovery from the coronavirus (COVID-19) pandemic in 2022 and 2023, the
market size of the UK’s hotel industry shrank by over half a billion British pounds in 2024. This figure suggests the industry may have hit a temporary ceiling, with the
UK’s continuing cost of living crisis having certainly exasperated the
biggest challenges facing hotel businesses when it comes to finding staff, namely salary expectations not being met. This is further evident when considering the average daily rates (ADR) of leading chains
Premier Inn and
Travelodge both declined in 2024 over the previous year. Despite these worrying metrics, over 60 percent of accommodation businesses
expressed a positive outlook on future expectations as of 2025, which was an increase from the 55 percent of businesses which were positive about their current states.
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