Chain Hotel Supply Surges in the UK and Germany

During the first decade of the 21st Century, the UK and Germany clearly become Europe’s leading markets for chain hotel development.

MKG Hospitality The UK and Germany prove to be Europe’s most dynamic markets for chain hotel development  over the last ten years, with both markets recording  proportionate growth in supply and demand.

Between 2000 and 2010, chain supply in the UK grows by over 47% to reach 251,323 rooms. Number of chain rooms sold increases by over 42%, allowing the UK to be the best performing  market in the first  decade  in terms of demand and chain hotel supply, with an ave- rage occupancy rate of 73.5% - number of rooms sold surpassing  that of France. Germany is also balanced in both chain supply and demand, each increasing by almost 25% in the ten year period.

“In both markets, new supply certainly stimulates de- mand. Portfolios continue to go through a restructuring phase, with developers, owners and financers placing their trust in corporate operated brands. In the UK, this is mainly driven by a boom in the economy and budget segments, with the likes of Premier Inn and Travelodge adopting aggressive development strategies, together with many new local brands,” states Director of Deve- lopment, MKG Hospitality, Vanguelis Panayotis.

In Spain, supply  also increases disproportionably,  as many real estate developers diversify into the hotel sector and saturate parts of the market. Finally, des- pite still having the largest  chain hotel supply  in Eu- rope, France is growing  slower in both new develop- ments and demand.


Established in 1985 by Georges Panayotis, MKG Group has built a solid reputation for business expertise and substantial European- based know-how in the fields of tourism, lodging and food service. MKG Group meets the needs of each of its clients by providing valuable analytical and decision-making skills necessary for success.

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