UK City hotels are growing in popularity and profitability every year. The industry is currently building on a successful 2007 when hotels in both London and the regions witnessed healthy room-yield growths with yet more sustained progress.

UK City Hotels Profitability
The fears that the industry would suffer following the 7/7 bombings have proved unfounded. Even London-based hotels have continued to see impressive growth and other cities have remained largely untouched by the threat of terrorism.

Profitability in the UK hotel industry is strong, with the room yield growth in London growing by 11.6%. In other UK cities the growth was closer to 5% which still represented healthy returns. Industry experts predict that this figure will continue to grow in the coming years. Innovation and investment is the key in the market and more hotels are looking at new ways to ‘wow’ their customers. Some hotels are even allowing customers the opportunity to ‘buy’ a room and share in the profitability of the industry by receiving a proportion of the income.

Types of Hotels
Although boutique, luxury and romantic hotels remain popular in cities across the UK, the real boom has been witnessed in the budget hotel sector. As consumers across the UK begin to tighten their belts, the idea of a cheap short UK city break becomes increasingly appealing. Research has indicated that by the year 2027, budget hotels will make up more than a quarter of the total UK hotel market. The figure currently stands at 12%.

Budget hotels are certainly not what they used to be, with the no frills concept being extended to city centres across the UK. Booking a budget hotel no longer means that you are going to be in an inconvenient or undesirable location. Most city centres now boast a host of budget hotels that offer convenient, clean and safe accommodation at a price that is considerably lower than luxurious alternatives.

Trends in the UK Hotel Industry
The types of customers are also changing within the UK city hotel industry. Traditionally, most people staying in city hotels were business travellers who had relatively little say in where they would stay. City hotels are now frequented by all sorts of travellers including families and groups heading off for a short break within the UK. Customers are much more time and money conscious, meaning that a UK city break will often be the number one choice.

Furthermore, the UK tourist industry as a whole is booming, with many travellers recognising that UK cities have as much to offer as many other European cities. For example, Liverpool was recently nominated as the European Capital of Culture and has, therefore, attracted a huge rise in visitors. Attractions such as large shopping centres and a wide range of outdoor activities have ensured that visitors of all types are kept entertained!

Although the UK City hotel sector remains buoyant, it is likely that the current economic climate will have at least a slight impact on the industry. Budget hotels are set to flourish with more niche luxury hotels having to go that extra mile to attract customers. Whatever the type of city hotel required, it is guaranteed that there is a UK city hotel somewhere that will perfectly match your needs!