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U.K. (FTSE) Hospitality Industry Analysis

UpdatedMar 02, 2026
DataAggregated Company Financials
Companies33
  • 7D4.1%
  • 3M-2.1%
  • 1Y-15.6%
  • YTD-2.8%

In the last week, the Hospitality industry is up 4.1%, with Compass Group up 4.5%. Meanwhile, InterContinental Hotels Group actually underperformed within the industry, shrinking 6.5% in the last week. In the past year, the industry is down 16%. Earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

Has the U.K. Hospitality Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 03 Mar 2026UK£58.4bUK£58.2bUK£1.6b14.4x37.4x1x
Thu, 29 Jan 2026UK£57.2bUK£57.4bUK£1.6b13.5x36.9x1x
Sat, 27 Dec 2025UK£60.6bUK£58.1bUK£1.6b13.6x38.4x1x
Mon, 24 Nov 2025UK£61.4bUK£57.3bUK£1.3b15.8x46.5x1.1x
Wed, 22 Oct 2025UK£64.4bUK£56.6bUK£1.3b16.2x50.1x1.1x
Fri, 19 Sep 2025UK£67.5bUK£58.3bUK£1.3b17.1x53.5x1.2x
Sun, 17 Aug 2025UK£69.3bUK£58.3bUK£1.3b17x53.8x1.2x
Tue, 15 Jul 2025UK£69.2bUK£58.4bUK£1.4b17.1x48.8x1.2x
Thu, 12 Jun 2025UK£69.1bUK£58.1bUK£1.4b18.2x49.3x1.2x
Sat, 10 May 2025UK£67.6bUK£57.0bUK£1.4b17.2x49x1.2x
Mon, 07 Apr 2025UK£63.2bUK£58.1bUK£1.4b16.4x46x1.1x
Wed, 05 Mar 2025UK£70.9bUK£58.9bUK£1.7b14.7x42.8x1.2x
Fri, 31 Jan 2025UK£71.8bUK£60.0bUK£1.7b18.3x43.2x1.2x
Sun, 29 Dec 2024UK£71.2bUK£59.6bUK£1.7b20.2x43.1x1.2x
Tue, 26 Nov 2024UK£71.6bUK£58.9bUK£1.8b20.6x40.3x1.2x
Thu, 24 Oct 2024UK£69.6bUK£57.9bUK£1.7b23.1x40.9x1.2x
Sat, 21 Sep 2024UK£68.5bUK£56.9bUK£1.7b23.6x40.2x1.2x
Mon, 19 Aug 2024UK£66.5bUK£57.8bUK£1.7b22.6x39.9x1.2x
Wed, 17 Jul 2024UK£62.9bUK£57.5bUK£1.2b21.8x52.2x1.1x
Fri, 14 Jun 2024UK£89.1bUK£67.5bUK£215.2m21.6x414.1x1.3x
Sun, 12 May 2024UK£94.7bUK£65.7bUK£160.4m22.6x590.5x1.4x
Tue, 09 Apr 2024UK£92.3bUK£65.7bUK£97.2m21.8x950.1x1.4x
Thu, 07 Mar 2024UK£94.1bUK£65.1bUK£1.1b21.3x85x1.4x
Sat, 03 Feb 2024UK£94.8bUK£66.3bUK£1.1b21.6x86.5x1.4x
Mon, 01 Jan 2024UK£91.2bUK£66.2bUK£984.8m22.8x92.6x1.4x
Wed, 29 Nov 2023UK£84.8bUK£65.7bUK£1.1b20.5x78.6x1.3x
Fri, 27 Oct 2023UK£84.4bUK£64.3bUK£1.0b20.2x80.6x1.3x
Sun, 24 Sep 2023UK£89.0bUK£64.0bUK£1.0b19.6x88.9x1.4x
Tue, 22 Aug 2023UK£87.3bUK£63.7bUK£1.0b23.7x85.7x1.4x
Thu, 20 Jul 2023UK£95.6bUK£61.8bUK£1.2b24.1x80.5x1.5x
Sat, 17 Jun 2023UK£96.6bUK£61.7bUK£1.2b22.6x80.6x1.6x
Mon, 15 May 2023UK£97.5bUK£61.0bUK£1.2b22.2x78.1x1.6x
Wed, 12 Apr 2023UK£91.8bUK£57.2bUK£1.2b19.1x74.2x1.6x
Fri, 10 Mar 2023UK£86.6bUK£54.9bUK£1.9b19.7x45.9x1.6x
Price to Earnings Ratio

45.9x


Total Market Cap: UK£86.6bTotal Earnings: UK£1.9bTotal Revenue: UK£54.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Hospitality Industry Price to Earnings3Y Average 106.9x202420252026
Current Industry PE
  • Investors are pessimistic on the British Hospitality industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 37.4x which is lower than its 3-year average PE of 107x.
  • The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 1.0x.
Past Earnings Growth
  • The earnings for companies in the Hospitality industry have declined 6.1% per year over the last three years.
  • Meanwhile revenues have remained mostly flat.
  • This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.K. Consumer Discretionary industry?

GB Market1.95%
Consumer Discretionary1.89%
Hospitality4.10%
Restaurants5.00%
Leisure Facilities2.83%
Casinos and Gaming2.40%
Hotels, Resorts and Cruise Lines-0.55%
Industry PE
  • Investors are most optimistic about the Restaurants industry even though it's trading below its 3-year average PE ratio of 34.1x.
    • Analysts are expecting annual earnings growth of 12.5%, which is lower than the prior year's growth of 19.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Casinos and Gaming industry, expecting annual earnings growth of 79% over the next 5 years.
  • This is better than its past earnings growth rate of 35% per year.
  • In contrast, the Restaurants industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CPG Compass GroupUK£22.534.5%
+UK£1.7b		-19.8%PE27.5x
MAB Mitchells & ButlersUK£2.951.2%
+UK£20.8m		31.4%PE9.9x
PTEC PlaytechUK£3.491.6%
+UK£16.1m		-52.5%PS1.4x
BOWL Hollywood Bowl GroupUK£2.601.2%
+UK£5.0m		-1.1%PE12.5x
VLRM ValereumUK£0.107.9%
+UK£3.7m		-54.4%PS2600.4x

Latest News

HSW
UK£1.09
Hostelworld Group
7D
0.5%
1Y
-11.1%
PPH
UK£17.32
PPHE Hotel Group
7D
-12.1%
1Y
32.2%
TRN
UK£1.86
Trainline
7D
-8.2%
1Y
-39.6%
IHG
US$131.80
InterContinental Hotels Group
7D
-6.5%
1Y
4.4%

IHG: Future Returns Will Depend On Buybacks And AI Execution Confidence

InterContinental Hotels Group's analyst fair value estimate is updated from $145.63 to $153.14 as analysts factor in recent price target increases, modestly improved margin and revenue assumptions, and slightly lower forward P/E expectations supported by recent Street research. Analyst Commentary Street research around InterContinental Hotels Group has turned more constructive on the back of higher price targets and updated views on revenue and margin potential, while still reflecting some valuation and execution questions.
WTB
UK£25.41
Whitbread
7D
-3.1%
1Y
-4.7%

WTB: Future Share Retirements Will Support Earnings Power And P E Multiple

Analysts have nudged their fair value estimate for Whitbread down from about £40.50 to roughly £37.98 per share. This reflects mixed recent price target moves around £2,600 and updated assumptions for growth, margins and future P/E multiples.
CPG
UK£22.53
Compass Group
7D
4.5%
1Y
-19.8%

CPG: Premium P/E Framework Will Reward Execution On Revenue Mix And Margins

Analysts have trimmed their price target on Compass Group by £1.00, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E following recent research such as the latest target change from RBC Capital. Analyst Commentary Bullish Takeaways Bullish analysts view the £1.00 trim to the price target as a fine tuning of valuation inputs rather than a fundamental reset of the Compass Group equity story.
PTEC
UK£3.49
Playtech
7D
1.6%
1Y
-52.5%

PTEC: Core B2B Strength Will Support Higher Fair Value Anchors

Analysts have nudged their fair value estimate for Playtech higher to £4.49, reflecting a slightly lower discount rate and small adjustments to revenue growth, profit margin and future P/E assumptions, in line with a modest price target increase recently cited in Street research. Analyst Commentary Bullish Takeaways Bullish analysts point to the recent price target lift of 5 GBp as support for a slightly higher fair value, which lines up with the updated £4.49 estimate.
DOM
UK£1.97
Domino's Pizza Group
7D
-3.8%
1Y
-32.7%

DOM: Refined Discount Assumptions Will Support Long Term Upside Potential

Analysts have trimmed their price target on Domino's Pizza Group by £0.35, citing updated assumptions around discount rates, revenue growth and profit margins that leave their fair value estimate broadly unchanged. Analyst Commentary Bullish analysts see the latest price target trim as a fine tuning exercise rather than a shift in conviction, with the revised fair value still implying upside potential relative to recent trading levels.
JDW
UK£7.05
J D Wetherspoon
7D
-4.0%
1Y
18.6%
WVIA
UK£2.45
Winvia Entertainment
7D
-4.9%
1Y
n/a
BOWL
UK£2.60
Hollywood Bowl Group
7D
1.2%
1Y
-1.1%
SSPG
UK£1.91
SSP Group
7D
-3.7%
1Y
13.7%

SSP Group (LON:SSPG) Might Have The Makings Of A Multi-Bagger

Feb 05
SSP Group (LON:SSPG) Might Have The Makings Of A Multi-Bagger
MAB
UK£2.95
Mitchells & Butlers
7D
1.2%
1Y
31.4%

Benign Growth For Mitchells & Butlers plc (LON:MAB) Underpins Its Share Price

Feb 05
Benign Growth For Mitchells & Butlers plc (LON:MAB) Underpins Its Share Price
GYM
UK£1.76
Gym Group
7D
0.8%
1Y
36.3%
FSTA
UK£7.30
Fuller Smith & Turner
7D
0.3%
1Y
35.2%
VLRM
UK£0.10
Valereum
7D
7.9%
1Y
-54.4%