1. Introduction

In 2024, the UK hotel market is experiencing dynamic growth, making it an exciting time to observe its expansion. However, while it’s clear that the market is thriving, pinpointing the exact number of hotels in the United Kingdom is a challenge. This is due to the fluid nature of hotel openings, closures, and developments across the country. Even so, what we do know is that the hotel sector is robust, with a steady increase in the supply of hotel rooms anticipated over the next few years. In major cities like London and regional hubs such as Manchester and Glasgow, hotel development continues to evolve to meet the demands of an ever-growing tourism and business travel sector.

Despite the lack of an exact count, the UK hotel market remains on an upward trajectory, with significant growth forecasted for the coming years. The demand for new hotel rooms, particularly in high-growth regions, shows the industry’s resilience and adaptability, even amid economic challenges such as rising construction costs.

2. Understanding the UK Hotel Market in 2024

In 2024, the UK hotel market is poised for continued expansion. According to industry projections, over 17,000 new hotel rooms are expected to enter the market by the end of 2025, marking a steady increase from previous years. This translates to a growth of around 2.5% in hotel room supply across the country. While an exact count of hotels is elusive, room supply offers a clear indicator of market health. More rooms generally signal higher demand, whether from domestic travelers or international visitors.

Hotel rooms are often used as a key measure of market development because they reflect the overall supply-demand balance in the tourism and hospitality industries. Growth in room supply is an indication of a thriving sector that is meeting the needs of a growing visitor base. Factors driving this growth include a strong tourism recovery post-pandemic, evolving customer preferences, and an increased domestic demand for short stays and business-related travel. Additionally, regional growth is a significant factor, with cities like Manchester, Birmingham, and Edinburgh seeing higher rates of new hotel construction compared to London, where the market is growing at a more steady pace.

As the UK’s tourism sector rebounds and new trends in business travel emerge, hotels are increasingly catering to a broader range of guests. From boutique hotels to luxury chains and budget accommodations, the variety of options available reflects changing consumer preferences, particularly among younger travelers and those seeking more personalized experiences. Combined with a steady increase in both domestic and international tourism, the UK’s hotel market continues to flourish, marking 2024 as a year of ongoing opportunity and transformation for the industry.

3. Key Insights on Hotel Room Growth

Total New Room Supply in 2024 and 2025

The UK hotel market insights is poised for continued growth, with an anticipated 17,000 new rooms entering the market by 2025. This represents a 2.5% increase over the expected year-end 2024 stock of hotel rooms, signaling the sustained expansion of the sector. The projected increase in room supply aligns with a recovery in both leisure and business travel, as the hospitality industry adapts to evolving consumer demands and preferences.

The addition of these new rooms reflects the confidence within the hotel sector, despite challenges such as rising construction costs. It highlights a market that remains dynamic, with developers and hoteliers responding to a steadily increasing demand for accommodations across the country.

Room Supply Breakdown by Region

• London: As the capital, London remains the dominant hub for new hotel supply. Approximately 9,300 hotel rooms are either under construction or in final planning stages, set to be delivered by 2026. This represents a significant portion of the projected new room supply for the UK overall. London’s hotel market continues to grow at an annual rate of 1.8%, which aligns with the 15-year average growth for the city. This steady expansion is driven by both international tourism and business travel, maintaining London’s position as a central player in the UK hotel industry.
• Regional Growth: While London leads in terms of absolute room supply, other regions are seeing more pronounced growth in relative terms. Cities like Manchester, Birmingham, Liverpool, Edinburgh, and Glasgow are expected to dominate new hotel deliveries. Manchester, in particular, stands out with a projected annual growth rate of 3.6%, driven by the addition of 2,300 new rooms in the pipeline. This reflects the city’s growing importance as a business and leisure destination, with its thriving economy and increasing tourism appeal.

Growth trends in these cities point to a diversification of the UK’s hotel market, with regional areas beginning to see stronger expansion as they become increasingly attractive to both business and leisure travelers.

4. Regional Development Trends

London’s Hotel Market

London remains the dominant player in the UK hotel market, with significant developments underway. The city’s 1.8% annual growth rate reflects a steady, long-term expansion trend, which has been a hallmark of London’s hotel sector for the past 15 years. This growth rate is expected to continue, supported by London’s enduring popularity as a major global tourism, business, and financial center.

Approximately 9,300 new rooms are expected to be delivered through 2026, ensuring that the capital will maintain its position as a key market for hotel development. Despite challenges like rising costs, London’s hotel sector has remained resilient, catering to a steady demand for both upscale and budget accommodations.

Other Key Cities

• Manchester: Projected to see a 3.6% annual growth rate in its hotel sector, Manchester is emerging as one of the top cities for hotel development. The addition of 2,300 new rooms in the city’s committed pipeline further cements Manchester’s status as a major player in the UK hotel market. The city’s vibrant economy, growing tourism, and expanding conference and event industries all contribute to this strong growth trajectory.
• Birmingham, Liverpool, Edinburgh, and Glasgow: Other regional cities such as Birmingham, Liverpool, Edinburgh, and Glasgow are also experiencing stronger-than-average growth rates in hotel development. These cities are benefiting from increasing tourist visits, regional conferences, and the appeal of emerging cultural and business hubs. With new hotels opening in these locations, they are becoming key contributors to the UK’s expanding hotel sector.

These regional cities are helping to drive the UK hotel market’s growth, with several of them experiencing higher growth rates than London in percentage terms, contributing to a more diverse and balanced hotel landscape across the country.

5. Factors Impacting Hotel Growth

Construction and Supply Constraints

While the UK hotel market is experiencing steady growth, several challenges are impacting the pace at which new hotels can be developed. One of the key barriers is the rising construction costs. These increased costs have led to delays in some projects, as developers face higher material prices and labor shortages. Despite these obstacles, many hotels are still progressing, though at a slower rate than initially anticipated. The challenge of securing land in prime locations, especially in city centers like London, also limits the availability of new sites for hotel development.

Additionally, the economic climate, particularly inflation and the global supply chain disruptions, has placed pressure on developers to reassess their timelines and budgets. This means that while the UK hotel sector continues to grow, developers are increasingly focusing on strategic locations, cost-effective builds, and adaptive reuse of existing properties to mitigate these challenges.

The Impact of Post-Pandemic Recovery

The post-pandemic recovery has significantly influenced the hotel sector’s growth trajectory. As restrictions eased, the demand for both domestic and international travel surged, with tourism rebounding faster than many had anticipated. This resurgence in tourism has created a strong demand for accommodations, leading to new hotel developments across the UK.

The pandemic also shifted consumer preferences, with travelers increasingly seeking more flexible, hygiene-conscious, and technologically enhanced hotel experiences. Hoteliers have adapted by introducing innovations such as contactless check-ins, enhanced cleaning protocols, and the use of digital solutions to streamline services. These trends have influenced the types of hotels being built, with a noticeable increase in budget, mid-range, and boutique hotels, which cater to evolving consumer needs.

The combined effect of these factors has contributed to a rapid recovery in the hotel market, particularly in cities with high levels of tourism and business activities, like London, Manchester, and Edinburgh.

6. Understanding the Limitations of Hotel Count Data

While the UK hotel industry is growing steadily, it’s important to acknowledge the difficulty in pinning down an exact number of hotels. The reasons for this include the constantly evolving nature of the market, with new hotels opening and others closing or rebranding. Additionally, some establishments may not be officially categorized as hotels (e.g., serviced apartments or hostels), which can complicate the counting process.

However, the projected growth rates and room additions provide a comprehensive picture of the market dynamics, even if they don’t offer a precise hotel count. The growth trends we see today are influenced by various factors such as regional development, consumer demand, and ongoing shifts in the hospitality industry, as mentioned earlier.

For a more in-depth understanding of the UK hotel market, resources such as national tourism boards, industry reports from firms like PwC, Savills, and Horwath HTL, and data from local government sources can offer insights into these trends. These reports often provide detailed analyses of both current market conditions and future projections, helping industry stakeholders and researchers track developments in the hotel sector.

7. Conclusion

The UK hotel industry in 2024 is continuing its upward trajectory, driven by strong demand and substantial investment across key cities. While it’s challenging to provide an exact count of hotels due to the dynamic nature of the market, the projected growth in hotel rooms, particularly in London, Manchester, and other regional cities, illustrates a promising future.

The trend toward more diverse accommodations in response to changing customer expectations and the recovery of international and domestic tourism is shaping the industry. Regional growth is also a critical element to watch, as cities like Birmingham, Liverpool, Edinburgh, and Glasgow are seeing more significant expansions in their hotel stock. As these trends continue, the UK hotel market is poised for steady development well into the next decade.

For readers looking to stay informed, it’s essential to follow official industry reports and projections from credible sources like PwC, Savills, and CBRE. These updates will offer further insights into market trends and guide businesses and travelers in understanding the evolving landscape of the UK hotel sector.

Frequently Asked Questions

Question 1: How many hotels are there in the United Kingdom in 2024?
Answer:
The exact number of hotels in the UK in 2024 is difficult to pinpoint due to the dynamic nature of hotel openings, closures, and reclassifications. However, the market is experiencing robust growth, with over 17,000 new hotel rooms expected by the end of 2025, reflecting a steady 2.5% annual increase in room supply.

Question 2: What factors are driving the growth of the UK hotel industry in 2024?
Answer:
Several factors contribute to the growth of the UK hotel industry in 2024, including:

• Post-pandemic tourism recovery.
• Increased demand for short-stay and business travel.
• Growth in regional cities like Manchester, Birmingham, and Glasgow.
• Changing consumer preferences for boutique and budget accommodations.

Question 3: Which UK cities are seeing the most significant hotel developments?
Answer:
London leads with around 9,300 new rooms under construction or planned by 2026. However, regional cities like Manchester, Birmingham, Liverpool, Edinburgh, and Glasgow are experiencing faster growth rates. Manchester stands out with a 3.6% annual growth rate and 2,300 new rooms in development.

Question 4: What challenges does the UK hotel industry face in 2024?
Answer:
Challenges include rising construction costs, limited availability of prime land, labor shortages, and economic pressures such as inflation. Despite these obstacles, developers are focusing on strategic locations and adaptive reuse projects to mitigate these issues.

Question 5: How has post-pandemic recovery influenced the UK hotel market?
Answer:
The post-pandemic recovery has fueled a resurgence in both domestic and international tourism. Hotels are adapting to new trends, such as contactless check-ins, enhanced hygiene protocols, and flexible booking options, which align with evolving consumer expectations for convenience and safety.