UK hotel investment hits £3bn

01 November, 2007: Investment in the UK hotel industry hit 3 billion in the past year, according to the latest survey from the British Hospitality Association. The figure, which is the highest ever recorded, takes in more than 140 new hotels as well as re-launches, refurbishment and extension of existing properties. According to the Trends and Statistics 2007 report, 90 of the new hotels were in the budget sector supporting recent MINTEL research on the rapid growth at the low-end of the market (see separate story). New hotels in 2007 accounted for 13,000 new rooms compared to 11,000 the previous year. In addition, a further 113 new properties are already planned across the country for 2008 and a similar pace of construction is set to continue up to the 2012 Olympics. The report also estimates the UK tourism, hospitality and leisure industry to be worth more than 106 billion - 20 billion more than official estimates. BHA chief executive Bob Cotton said: "According to our estimates the industry has already reached its 100 billion target, set by the Government for 2012."

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