Cushman & Wakefield RETHINKING: The Shape Of Real Estate 2040

HOTELS

HOTELS FLOORSPACE FORECAST

INDEX (2023 = 100)

Prior to the pandemic, the tourism sector was one of the fastest growing industries, fuelled by increasing populations, disposable incomes and leisure time as well as improving transport infrastructure and the consumer shift away from spending on goods towards experiences. Healthy demand for hotel accommodation followed as a result, with 3.0% annualised growth in overnight stays between 2014 and 2019. While the pandemic put this trend on hold for two years, the recovery has been strong with hotel occupancy levels in Q1 2024 exceeding that of 2019. This supports the positive long-term outlook for the sector, with an increase of 30.8% in required floorspace by 2040. BY 2040, THE HOTEL SECTOR WILL INCREASE BY 30.8%.

160

120

100

80

FORECAST

60

40

HOTELS

20

2005

2010

2015

2020

2025

2030

2035

2040

CAGR

TOTAL

VOLUME CHANGE

2005-23

2023-40

2005-23

2023-40

2005-23

2023-40

HOTELS

2.0%

1.6%

43.3%

30.8%

105.6M SQ FT

107.7M SQ FT

RETHINKING: THE SHAPE OF REAL ESTATE IN THE UK

18

CUSHMAN & WAKEFIELD

OTE