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U.K. (FTSE) Hospitality Industry Analysis

UpdatedOct 01, 2025
DataAggregated Company Financials
Companies32
  • 7D2.3%
  • 3M-0.4%
  • 1Y0.3%
  • YTD-4.8%

In the last week, the Hospitality industry is up 2.3%, with Compass Group up 3.3%. Meanwhile, Mitchells & Butlers actually underperformed within the industry, shrinking 7.0% in the last week. Overall in the last year, the industry is flat. As for the next few years, earnings are expected to grow by 28% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 01 Oct 2025UK£67.9bUK£58.5bUK£1.3b16x53.5x1.2x
Fri, 29 Aug 2025UK£68.4bUK£58.4bUK£1.3b16.9x53.2x1.2x
Sun, 27 Jul 2025UK£71.9bUK£58.3bUK£1.4b17.2x50.7x1.2x
Tue, 24 Jun 2025UK£67.6bUK£58.1bUK£1.4b16.8x48x1.2x
Thu, 22 May 2025UK£70.3bUK£58.2bUK£1.4b19.1x48.5x1.2x
Sat, 19 Apr 2025UK£65.5bUK£57.1bUK£1.3b18x49x1.1x
Mon, 17 Mar 2025UK£67.5bUK£58.7bUK£1.6b15x42.8x1.1x
Wed, 12 Feb 2025UK£72.0bUK£60.1bUK£1.7b15.6x42.6x1.2x
Fri, 10 Jan 2025UK£71.2bUK£60.4bUK£1.7b18.3x42.4x1.2x
Sun, 08 Dec 2024UK£74.3bUK£59.2bUK£1.6b19.4x45.2x1.3x
Tue, 05 Nov 2024UK£70.1bUK£57.8bUK£1.7b23.3x41.2x1.2x
Thu, 03 Oct 2024UK£68.6bUK£57.0bUK£1.7b22.3x39.6x1.2x
Sat, 31 Aug 2024UK£67.1bUK£57.3bUK£1.7b23.5x39.1x1.2x
Mon, 29 Jul 2024UK£65.9bUK£57.7bUK£1.2b21.7x54.2x1.1x
Wed, 26 Jun 2024UK£61.0bUK£58.1bUK£1.2b21.7x49.3x1x
Fri, 24 May 2024UK£92.4bUK£67.8bUK£217.2m22.4x425.7x1.4x
Sun, 21 Apr 2024UK£90.1bUK£65.9bUK£75.6m21.8x1191.8x1.4x
Tue, 19 Mar 2024UK£93.2bUK£65.3bUK£898.1m20.6x103.8x1.4x
Thu, 15 Feb 2024UK£94.5bUK£65.0bUK£1.1b21.4x84.9x1.5x
Sat, 13 Jan 2024UK£89.1bUK£66.2bUK£980.7m21.6x90.8x1.3x
Mon, 11 Dec 2023UK£86.1bUK£66.2bUK£982.5m22.1x87.7x1.3x
Wed, 08 Nov 2023UK£86.5bUK£64.3bUK£1.0b20x82.4x1.3x
Fri, 06 Oct 2023UK£84.9bUK£64.0bUK£996.6m22.3x85.2x1.3x
Sun, 03 Sep 2023UK£89.7bUK£63.8bUK£1.0b20.7x85.9x1.4x
Tue, 01 Aug 2023UK£94.8bUK£61.8bUK£1.2b24.7x79.8x1.5x
Thu, 29 Jun 2023UK£95.9bUK£61.8bUK£1.2b21.7x80.5x1.6x
Sat, 27 May 2023UK£98.2bUK£61.7bUK£1.2b22.5x81.5x1.6x
Mon, 24 Apr 2023UK£94.7bUK£56.5bUK£1.2b20.1x78.6x1.7x
Wed, 22 Mar 2023UK£88.5bUK£57.1bUK£1.5b17.9x60.2x1.6x
Fri, 17 Feb 2023UK£85.8bUK£53.3bUK£1.8b20.5x48.5x1.6x
Sun, 15 Jan 2023UK£84.2bUK£53.1bUK£2.1b11.1x39.9x1.6x
Tue, 13 Dec 2022UK£80.3bUK£53.0bUK£2.1b11.3x38.2x1.5x
Thu, 10 Nov 2022UK£79.7bUK£47.4bUK£1.4b11.2x55.6x1.7x
Sat, 08 Oct 2022UK£73.5bUK£46.2bUK£986.6m8.7x74.5x1.6x
Price to Earnings Ratio

74.5x


Total Market Cap: UK£73.5bTotal Earnings: UK£986.6mTotal Revenue: UK£46.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Hospitality Industry Price to Earnings3Y Average 110.8x202320242025
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 53.5x which is lower than its 3-year average PE of 111x.
  • The 3-year average PS ratio of 1.4x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
  • The earnings for companies in the Hospitality industry have grown 8.8% per year over the last three years.
  • Revenues for these companies have grown 8.2% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

GB Market1.54%
Consumer Discretionary2.54%
Hospitality2.28%
Restaurants2.80%
Casinos and Gaming0.82%
Hotels, Resorts and Cruise Lines0.54%
Leisure Facilities-0.55%
Industry PE
  • Investors are most optimistic about the Restaurants industry, which is trading close to its 3-year average PE ratio of 35.3x.
    • Analysts expect its future annual earnings growth (19.8%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Casinos and Gaming industry, expecting annual earnings growth of 102% 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 14% 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£25.293.3%
+UK£1.4b		4.6%PE39.5x
IHG InterContinental Hotels GroupUK£89.742.2%
+UK£287.5m		10.8%PE24.4x
SSPG SSP GroupUK£1.719.5%
+UK£118.5m		8.9%PS0.4x
WTB WhitbreadUK£32.201.9%
+UK£103.5m		2.1%PE21.9x
GRG GreggsUK£16.043.4%
+UK£52.8m		-45.5%PE11.2x

Latest News

MEX
UK£0.35
Tortilla Mexican Grill
7D
-10.7%
1Y
-30.0%

Market Cool On Tortilla Mexican Grill plc's (LON:MEX) Revenues

Oct 01
Market Cool On Tortilla Mexican Grill plc's (LON:MEX) Revenues
CPG
UK£25.29
Compass Group
7D
3.3%
1Y
4.6%
IHG
UK£89.74
InterContinental Hotels Group
7D
2.2%
1Y
10.8%

Asian Expansion And Digital Bookings Will Transform Hospitality

Analysts have raised their price target for InterContinental Hotels Group to £91.58, citing improved RevPAR expectations, robust earnings visibility, and strong free cash flow, despite near-term U.S. RevPAR pressures and a mixed outlook on immediate catalysts. Analyst Commentary Bullish analysts cite the rebasing of RevPAR expectations, improving narrative, and IHG’s superior earnings visibility and strong free cash flow conversion as drivers for optimism.
MAB
UK£2.47
Mitchells & Butlers
7D
-7.0%
1Y
-16.3%

Earnings Working Against Mitchells & Butlers plc's (LON:MAB) Share Price

Sep 26
Earnings Working Against Mitchells & Butlers plc's (LON:MAB) Share Price
SSPG
UK£1.71
SSP Group
7D
9.5%
1Y
8.9%
OTB
UK£2.22
On the Beach Group
7D
-14.0%
1Y
64.3%
WTB
UK£32.20
Whitbread
7D
1.9%
1Y
2.1%
PTEC
UK£3.69
Playtech
7D
2.1%
1Y
-50.5%
PPH
UK£13.66
PPHE Hotel Group
7D
3.2%
1Y
13.8%
TRN
UK£2.79
Trainline
7D
-2.3%
1Y
-14.6%
GRG
UK£16.04
Greggs
7D
3.4%
1Y
-45.5%

Greggs (LON:GRG) Has A Pretty Healthy Balance Sheet

Sep 09
Greggs (LON:GRG) Has A Pretty Healthy Balance Sheet
ENT
UK£8.74
Entain
7D
0.7%
1Y
13.4%

Digitalization Will Expand iGaming And Online Betting

Analysts maintain a positive outlook on Entain due to improved operational performance, management execution, and favorable regulatory developments, resulting in no change to the consensus price target, which remains at £11.39. Analyst Commentary Bullish analysts highlight improved operational performance and execution driving positive momentum in core markets.
JDW
UK£6.82
J D Wetherspoon
7D
-2.2%
1Y
-6.4%

Benign Growth For J D Wetherspoon plc (LON:JDW) Underpins Its Share Price

Aug 30
Benign Growth For J D Wetherspoon plc (LON:JDW) Underpins Its Share Price
EVOK
UK£0.52
Evoke
7D
-1.9%
1Y
-19.7%
YNGA
UK£8.00
Young's Brewery
7D
-2.4%
1Y
-9.5%
BOWL
UK£2.53
Hollywood Bowl Group
7D
-1.4%
1Y
-18.5%