Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Hospitality Industry Analysis

UpdatedDec 24, 2025
DataAggregated Company Financials
Companies32
  • 7D2.1%
  • 3M-4.5%
  • 1Y-10.8%
  • YTD-11.8%

The Hospitality industry is up 3.1% in the last week, with Compass Group up 3.1%. During this same period, the Rank Group underperformed, falling 5.3%. In contrast, the industry has lost 9.8% in the last 12 months. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 24 Dec 2025UK£60.9bUK£58.1bUK£1.6b13.6x38.5x1x
Fri, 21 Nov 2025UK£61.0bUK£57.4bUK£1.3b15.8x46.1x1.1x
Sun, 19 Oct 2025UK£64.1bUK£56.4bUK£1.3b16.9x50x1.1x
Tue, 16 Sep 2025UK£68.6bUK£58.2bUK£1.3b17.8x54.5x1.2x
Thu, 14 Aug 2025UK£69.1bUK£58.2bUK£1.3b19.8x54.2x1.2x
Sat, 12 Jul 2025UK£69.8bUK£58.0bUK£1.4b17.3x49.6x1.2x
Mon, 09 Jun 2025UK£68.6bUK£58.1bUK£1.4b18.1x48.9x1.2x
Wed, 07 May 2025UK£68.7bUK£56.8bUK£1.4b18x50.9x1.2x
Fri, 04 Apr 2025UK£66.0bUK£57.6bUK£1.4b17.2x48.6x1.1x
Sun, 02 Mar 2025UK£71.1bUK£59.3bUK£1.7b15.4x42.6x1.2x
Tue, 28 Jan 2025UK£70.5bUK£59.9bUK£1.7b18.3x42.4x1.2x
Thu, 26 Dec 2024UK£71.3bUK£59.7bUK£1.7b20.3x43.1x1.2x
Sat, 23 Nov 2024UK£71.2bUK£59.0bUK£1.8b20.7x40x1.2x
Mon, 21 Oct 2024UK£70.0bUK£57.6bUK£1.7b23.3x41.4x1.2x
Wed, 18 Sep 2024UK£69.4bUK£56.6bUK£1.7b23.5x40.7x1.2x
Fri, 16 Aug 2024UK£66.5bUK£58.0bUK£1.7b22.1x39.6x1.1x
Sun, 14 Jul 2024UK£63.2bUK£57.4bUK£1.2b22x52.6x1.1x
Tue, 11 Jun 2024UK£90.4bUK£67.7bUK£216.6m21.9x417.3x1.3x
Thu, 09 May 2024UK£93.7bUK£65.7bUK£158.0m22.5x592.8x1.4x
Sat, 06 Apr 2024UK£90.9bUK£65.7bUK£95.6m21.4x951x1.4x
Mon, 04 Mar 2024UK£94.1bUK£65.0bUK£1.1b22.8x85.6x1.4x
Wed, 31 Jan 2024UK£95.1bUK£66.2bUK£980.9m20.8x96.9x1.4x
Fri, 29 Dec 2023UK£90.9bUK£66.2bUK£984.7m23x92.4x1.4x
Sun, 26 Nov 2023UK£85.2bUK£65.7bUK£1.1b20.7x79x1.3x
Tue, 24 Oct 2023UK£85.2bUK£64.3bUK£1.0b20x81.4x1.3x
Thu, 21 Sep 2023UK£91.2bUK£63.9bUK£1.0b18.7x90.8x1.4x
Sat, 19 Aug 2023UK£87.2bUK£63.7bUK£1.0b23.9x85.7x1.4x
Mon, 17 Jul 2023UK£95.5bUK£61.8bUK£1.2b24.2x80.4x1.5x
Wed, 14 Jun 2023UK£97.0bUK£61.7bUK£1.2b23.2x80.7x1.6x
Fri, 12 May 2023UK£97.0bUK£61.0bUK£1.3b21.3x77.6x1.6x
Sun, 09 Apr 2023UK£90.9bUK£57.2bUK£1.2b19.2x73.5x1.6x
Tue, 07 Mar 2023UK£87.0bUK£54.8bUK£1.9b20x44.8x1.6x
Thu, 02 Feb 2023UK£84.6bUK£53.3bUK£1.8b18.5x47.1x1.6x
Sat, 31 Dec 2022UK£79.4bUK£53.3bUK£2.0b16.5x40.1x1.5x
Price to Earnings Ratio

40.1x


Total Market Cap: UK£79.4bTotal Earnings: UK£2.0bTotal Revenue: UK£53.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Hospitality Industry Price to Earnings3Y Average 107.4x202320242025
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 38.8x 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 1.1x.
Past Earnings Growth
  • The earnings for companies in the Hospitality industry have declined 7.2% per year over the last three years.
  • Meanwhile revenues for these companies have grown 3.0% per year.
  • This means that although more sales are being generated, 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 Market2.11%
Consumer Discretionary1.03%
Hospitality2.11%
Hotels, Resorts and Cruise Lines3.87%
Restaurants2.24%
Leisure Facilities-0.10%
Casinos and Gaming-0.37%
Industry PE
  • Investors are most optimistic about the Restaurants industry even though it's trading below its 3-year average PE ratio of 34.3x.
    • Analysts are expecting annual earnings growth of 13.0%, 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 82% over the next 5 years.
  • However this is lower than its past earnings growth rate of 263% per year.
  • In contrast, the Hotels, Resorts and Cruise Lines industry is expected to see its earnings grow by 11% 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£23.842.2%
+UK£882.6m		-9.9%PE29.2x
WTB WhitbreadUK£25.555.8%
+UK£234.3m		-13.7%PE17.2x
IHG InterContinental Hotels GroupUK£105.251.4%
+UK£225.6m		5.2%PE28.5x
SSPG SSP GroupUK£2.058.2%
+UK£127.9m		14.6%PS0.4x
MAB Mitchells & ButlersUK£2.621.6%
+UK£21.5m		6.5%PE8.8x

Latest News

GRG
UK£16.76
Greggs
7D
-2.6%
1Y
-39.6%

GRG: Store Expansion And Brand Loyalty Will Drive Long-Term Upside

Our updated narrative for Greggs reduces the fair value estimate from 30.6 to 26.7 per share. This reflects analysts lowering their price targets by roughly GBp 420 and GBp 160 respectively, as they incorporate slightly slower multiple expansion despite broadly unchanged growth and margin expectations.
CPG
UK£23.84
Compass Group
7D
2.2%
1Y
-9.9%

There's Reason For Concern Over Compass Group PLC's (LON:CPG) Price

Dec 20
There's Reason For Concern Over Compass Group PLC's (LON:CPG) Price
MAB
UK£2.62
Mitchells & Butlers
7D
1.6%
1Y
6.5%
BOWL
UK£2.75
Hollywood Bowl Group
7D
-1.1%
1Y
-7.1%
WTB
UK£25.55
Whitbread
7D
5.8%
1Y
-13.7%
DOM
UK£1.72
Domino's Pizza Group
7D
-1.5%
1Y
-45.6%

DOM: Leadership Transition And Margin Pressures Will Shape A Cautious Outlook

Analysts have trimmed their price target on Domino's Pizza Group from £1.95 to £1.69, citing a modestly higher perceived risk and a slightly weaker margin outlook, which is only partially offset by marginally stronger expected revenue growth. What's in the News Chief executive Andrew Rennie has stepped down after just two years, following a halving of the share price over the past year.
HSW
UK£1.19
Hostelworld Group
7D
-4.8%
1Y
-9.8%
MARS
UK£0.59
Marston's
7D
3.7%
1Y
34.1%
IHG
UK£105.25
InterContinental Hotels Group
7D
1.4%
1Y
5.2%
EVOK
UK£0.21
Evoke
7D
-3.6%
1Y
-65.0%

EVOK: Future Upside Will Depend On UK Gaming Tax Headwinds

Narrative Update on Evoke The analyst price target for Evoke has been reduced from 82 GBp to 66 GBp, as analysts factor in higher UK gaming taxes, slightly softer revenue growth expectations and recent deal dynamics, even as margin and valuation assumptions remain broadly resilient. Analyst Commentary Recent Street research reflects a more balanced stance on Evoke, with analysts weighing supportive demand drivers and transaction dynamics against a tougher UK tax environment and softer long term growth assumptions.
SSPG
UK£2.05
SSP Group
7D
8.2%
1Y
14.6%

SSPG: Raised Earnings Outlook And Buyback Plan Will Support Upside

We trim our fair value estimate for SSP Group to £3.10 from £3.30 per share, reflecting analysts' reduced price targets following a more cautious view on margins and required returns, partly offset by still resilient revenue growth expectations and a higher assumed future P E multiple. Analyst Commentary Recent Street research remains constructive on SSP Group, even as some targets are recalibrated to reflect a more measured view on margins and the cost of capital.
RNK
UK£1.01
Rank Group
7D
-5.6%
1Y
17.8%

RNK Will Benefit From Index Inclusion Despite Moderately Higher Cost Pressures

Analysts have trimmed their price target on Rank Group from approximately £1.82 to about £1.64, reflecting slightly softer expectations for revenue growth and profit margins alongside a modestly higher assumed cost of capital. What's in the News Issued earnings guidance for 2026, stating the year has started strongly and that like for like operating profit is expected to be in line with market expectations despite higher employer national insurance, national living wage and new statutory levy costs (company guidance) Added to the S&P Global BMI Index, broadening the company’s visibility among global equity investors and passive index trackers (index announcement) Valuation Changes Fair Value: reduced modestly from approximately £1.82 to about £1.64 per share, reflecting more cautious assumptions.
FSTA
UK£7.20
Fuller Smith & Turner
7D
5.9%
1Y
14.6%
YNGA
UK£7.43
Young's Brewery
7D
4.1%
1Y
-17.1%
NXQ
UK£0.69
Nexteq
7D
-16.8%
1Y
9.4%
TRC
UK£0.00025
Revel Collective
7D
-83.3%
1Y
-94.7%