Boom time for budget hotels

The budget hotel sector grew by 35 per cent in the last three years as the recession persuaded people to consider cheaper options, a new study shows.

Since 2008, UK budget hotels added 20,000 rooms and are set to squeeze independent and mid-market brands further by 2030, a report by Melvin Gold Consulting says.

Market share by branded budget accommodation has accelerated from 12 per cent at the end of 2007 to 16 per cent of rooms in the UK serviced accommodation sector now.

Travelodge led the charge by opening 131 hotels, accounting for nearly half the extra rooms.