Budget hotels expected to boom
The UK's hotel sector is set to expand by 8% over the next two years, with the greatest growth in the budget and luxury accommodation markets.
The Hotels Britain 2007 report, created by accountancy firm PKF, predicts that over 23,000 new hotel rooms will be created in the years to 2009, increasing the total capacity of Britain's hotel sector to 320,000.
Budget hotels are expected to lead the expansion. They have already seen strong growth in 2006, contributing 80% of the 3,600 new rooms added to the sector last year.
A PKF spokesperson claimed the boom offers innovative opportunities for Britain's hoteliers:
"As competition intensifies, product differentiation is increasing in the limited service segment, with new brands ranging from 'luxury budget', to functional and very affordable products. For the first time in many years, we're seeing true innovation in the industry with the introduction of new hotel concepts."
