UK vacation lodging sector forecast for additional progress this yr having rebounded from the pandemic

Analysis from property developer, Stripe Property Group, has proven that having rebounded from a pandemic dip of 24% in 2021, the market measurement of the UK vacation lodging sector grew by 21% final yr, with the sector anticipated to learn from additional progress in 2023.

Barrows and Forrester analysed the market measurement of the UK vacation lodging market primarily based on income and the way this sector has grown over the past decade.

The analysis exhibits that as we speak, the estimated market measurement of the sector is £2.54bn, having grown by a formidable 38% over the past decade, from £1.8bn in 2013.

Nonetheless, this progress might have been much more spectacular had the pandemic not introduced the tourism and journey sector to its knees, as in 2021, the market measurement of the UK vacation lodging sector decreased by 24% in a single yr.

This was simply the second annual discount seen over the past decade and noticed complete market measurement fall from its peak of £2.76bn in 2020 to lower than £2.1bn in 2021.

The excellent news is {that a} return to normality has helped increase the sector, with a direct 21% bounce again in 2022 pushing market measurement again to £2.5bn.

It’s estimated that in 2023, the sector will develop by an additional 4%, nonetheless, the anticipated £2.6bn will stay some 4% under the pre-pandemic peak.

Managing Director of Stripe Property Group, James Forrester mentioned, “Whereas staycations boomed in recognition in the course of the pandemic, and proceed to take action, the UK vacation lodging sector was hit laborious by the restrictions imposed on journey, to not point out each different space of life.

Nonetheless, the sector has proven promising indicators of a return to kind and this progress is predicted to proceed this yr.

It ought to definitely be a consideration for these trying to make investments throughout the property market who may not want to comply with the standard path of a residential growth.

Whether or not it’s vacation lodging, function constructed scholar lodging, or a industrial enterprise, there are an unlimited array of alternatives inside the marketplace for savvy traders who want to diversify their portfolio.”