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U.K. (FTSE) Hospitality Industry Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies34
  • 7D-1.5%
  • 3M6.6%
  • 1Y-10.5%
  • YTD-2.0%

Over the last 7 days, the Hospitality industry has dropped 1.5%, driven by a pullback from Compass Group of 1.3%. Meanwhile, Playtech actually outperformed within the industry, gaining 6.4% in the last week. However, the industry is down 10% over the past year. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Jul 2026UK£73.0bUK£73.0bUK£2.1b16.4x35.5x1x
Sat, 30 May 2026UK£73.1bUK£73.0bUK£2.1b17.2x35.6x1x
Mon, 27 Apr 2026UK£70.0bUK£70.3bUK£1.9b14.7x37.2x1x
Wed, 25 Mar 2026UK£54.1bUK£58.7bUK£1.4b15.4x38x0.9x
Fri, 20 Feb 2026UK£57.2bUK£58.3bUK£1.6b12.8x36.3x1x
Sun, 18 Jan 2026UK£59.5bUK£58.4bUK£1.6b13.5x37.4x1x
Tue, 16 Dec 2025UK£59.6bUK£58.4bUK£1.6b14.9x37.7x1x
Thu, 13 Nov 2025UK£62.5bUK£57.2bUK£1.3b15.3x47.3x1.1x
Sat, 11 Oct 2025UK£64.8bUK£56.7bUK£1.3b16.9x50.1x1.1x
Mon, 08 Sep 2025UK£68.2bUK£58.4bUK£1.3b17x53.1x1.2x
Wed, 06 Aug 2025UK£71.4bUK£58.8bUK£1.4b19.5x50.3x1.2x
Fri, 04 Jul 2025UK£68.6bUK£57.8bUK£1.4b17.3x48.9x1.2x
Sun, 01 Jun 2025UK£68.5bUK£58.2bUK£1.4b18.4x48.6x1.2x
Tue, 29 Apr 2025UK£64.6bUK£56.8bUK£1.3b17.9x48.7x1.1x
Thu, 27 Mar 2025UK£64.8bUK£58.8bUK£1.6b17.8x40.9x1.1x
Sat, 22 Feb 2025UK£71.6bUK£59.1bUK£1.7b15.7x43.2x1.2x
Mon, 20 Jan 2025UK£70.7bUK£60.7bUK£1.7b18.3x41.8x1.2x
Wed, 18 Dec 2024UK£72.0bUK£59.2bUK£1.6b19.6x43.8x1.2x
Fri, 15 Nov 2024UK£70.8bUK£58.6bUK£1.8b20.7x40.2x1.2x
Sun, 13 Oct 2024UK£68.4bUK£57.5bUK£1.8b21.4x38.8x1.2x
Tue, 10 Sep 2024UK£68.7bUK£57.5bUK£1.7b23.6x39.9x1.2x
Thu, 08 Aug 2024UK£64.2bUK£58.3bUK£1.2b22.1x51.9x1.1x
Sat, 06 Jul 2024UK£61.6bUK£57.8bUK£1.2b21.8x50.5x1.1x
Mon, 03 Jun 2024UK£89.6bUK£67.6bUK£215.7m22x415.4x1.3x
Wed, 01 May 2024UK£91.0bUK£65.9bUK£58.9m22.7x1544.3x1.4x
Fri, 29 Mar 2024UK£94.4bUK£65.7bUK£94.1m21.4x1003.3x1.4x
Sun, 25 Feb 2024UK£94.5bUK£65.0bUK£1.1b21x84.9x1.5x
Tue, 23 Jan 2024UK£93.9bUK£66.2bUK£980.8m21.5x95.8x1.4x
Thu, 21 Dec 2023UK£91.6bUK£66.2bUK£984.9m23.3x93x1.4x
Sat, 18 Nov 2023UK£85.9bUK£64.3bUK£1.0b21x82.4x1.3x
Mon, 16 Oct 2023UK£86.0bUK£64.0bUK£988.5m21.8x87x1.3x
Wed, 13 Sep 2023UK£89.8bUK£63.9bUK£1.0b18.2x88.7x1.4x
Fri, 11 Aug 2023UK£93.2bUK£63.4bUK£1.4b26.2x64.4x1.5x
Sun, 09 Jul 2023UK£91.9bUK£61.8bUK£1.2b21.3x77.2x1.5x
Price to Earnings Ratio

77.2x


Total Market Cap: UK£91.9bTotal Earnings: UK£1.2bTotal Revenue: UK£61.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Hospitality Industry Price to Earnings3Y Average 102.7x202420252026
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 35.5x which is lower than its 3-year average PE of 103x.
  • The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 1.00x.
Past Earnings Growth
  • The earnings for companies in the Hospitality industry have grown 20% per year over the last three years.
  • Revenues for these companies have grown 5.8% 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 Market0.24%
Consumer Discretionary-0.45%
Hospitality-1.46%
Casinos and Gaming0.51%
Restaurants-1.32%
Leisure Facilities-1.69%
Hotels, Resorts and Cruise Lines-4.21%
Industry PE
  • Investors are most optimistic about the Restaurants industry even though it's trading below its 3-year average PE ratio of 32.6x.
    • Analysts are expecting annual earnings growth of 12.1%, which is higher than its past year's earnings growth of 2.6% 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.
  • 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 12% 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
PTEC PlaytechUK£3.216.4%
+UK£53.9m		-13.9%PS1.4x
MAB Mitchells & ButlersUK£2.481.0%
+UK£14.8m		-11.6%PE8x
PPH PPHE Hotel GroupUK£17.102.0%
+UK£14.2m		3.9%PE54.3x
OTB On the Beach GroupUK£1.785.1%
+UK£12.5m		-37.6%PE14.1x
GYM Gym GroupUK£2.112.4%
+UK£8.8m		36.7%PE50.5x

Latest News

GRG
UK£15.52
Greggs
7D
-6.7%
1Y
-7.3%
WVIA
UK£2.53
Winvia Entertainment
7D
3.1%
1Y
n/a
FSTA
UK£7.30
Fuller Smith & Turner
7D
1.7%
1Y
23.7%
GYM
UK£2.11
Gym Group
7D
2.4%
1Y
36.7%
Narrative Update • Jun 26

GYM: New Format Rollout And Refurbishments Will Drive Long-Term Upside

Analysts have lifted their price target for Gym Group to £2.42 from £2.11, citing refreshed assumptions that include updated fair value, discount rate, revenue growth, profit margin and future P/E inputs. What's in the News for Gym Group Gym Group outlined a rollout plan for a new gym format design that is intended to be scalable and cost effective across its estate.
DOM
UK£1.83
Domino's Pizza Group
7D
-3.8%
1Y
-28.2%
Narrative Update • Jun 25

DOM: New Leadership And Barclays Upgrade Will Support Future Share Price Upside

Analysts have lifted their price target for Domino's Pizza Group to £2.33, citing refreshed assumptions for discount rates, profit margins, revenue growth and future P/E multiples following recent research updates. What’s in the News for Domino's Pizza Group Domino's Pizza Group has appointed Nicola Frampton as permanent CEO, following her tenure as interim CEO and a comprehensive internal and external search process.
ENT
UK£5.52
Entain
7D
-0.5%
1Y
-40.1%
OTB
UK£1.78
On the Beach Group
7D
5.1%
1Y
-37.6%
Narrative Update • Jun 23

OTB: Share Buybacks And Execution Progress Will Support Future Upside

On the Beach Group’s updated analyst price target has been trimmed in line with recent cuts to around £2.80 to £3.14 from prior levels near £3.05 to £3.45, as analysts factor in slightly adjusted fair value, discount rate, revenue growth and profit margin assumptions, while maintaining broadly positive views on the stock. Analyst Commentary Recent research on On the Beach Group points to a mixed but generally constructive stance, with analysts trimming price targets while keeping positive ratings.
CPG
US$32.03
Compass Group
7D
-1.3%
1Y
-6.4%
Narrative Update • Jun 22

CPG: BNP Upgrade And Premium P/E Will Drive Future Upside

Analysts have nudged their price target for Compass Group slightly higher to $38.30 from $38.28, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E following recent research, including a BNP Paribas upgrade. What's in the News for Compass Group Recent research on Compass Group includes updated assumptions for fair value, discount rate, revenue growth, profit margin, and future P/E.
PPH
UK£17.10
PPHE Hotel Group
7D
2.0%
1Y
3.9%
Narrative Update • Jun 22

PPH: Freehold Purchase And Higher Margins Will Support Future Upside Potential

Analysts have nudged their price target for PPHE Hotel Group to £20.50 per share, a slight adjustment that reflects updated assumptions for revenue trends, profit margins, a higher future P/E multiple and a modestly lower discount rate. What’s in the News for PPHE Hotel Group Fattal Hotels cancelled its proposed acquisition of the remaining 96.03% stake in PPHE Hotel Group on June 19, 2026, ending an offer that had been valued at £880 million, or £22 per share, subject to conditions.
IHG
US$168.50
InterContinental Hotels Group
7D
-1.9%
1Y
44.2%
Narrative Update • Jun 22

IHG: Future Returns Will Depend On Net Unit Growth And Conversions

InterContinental Hotels Group's analyst price target has been raised, with recent moves such as Goldman Sachs lifting its view to $188 from $165 and Bernstein moving to $154 from $141. Analysts point to stronger net unit growth, a deeper pipeline, and improving conversion trends as key supports for the updated fair value of $155.18.
WTB
UK£23.76
Whitbread
7D
-6.8%
1Y
-18.0%
Narrative Update • Jun 18

WTB: Trading Momentum And P E Reset Will Drive Future Upside

Whitbread's analyst price target has been trimmed by £1.41 to £36.52, as analysts adjust fair value and profit margin assumptions while also expecting different future P/E and revenue growth inputs compared with previous estimates. Analyst Commentary Recent research on Whitbread highlights a mix of caution and optimism, with several price target revisions reflecting updated assumptions on valuation multiples and profit margins.
BOWL
UK£2.77
Hollywood Bowl Group
7D
-4.3%
1Y
17.1%
RNK
UK£0.94
Rank Group
7D
-3.9%
1Y
-31.1%
Narrative Update • Jun 18

RNK: Steady Guidance And Marginal Assumption Shifts Will Support Repricing Potential

Analysts have maintained their fair value estimate for Rank Group at £1.45. They have made only marginal adjustments to the discount rate, revenue growth, profit margin and future P/E assumptions, which together support a broadly steady view of the stock’s long term valuation profile.
PTEC
UK£3.21
Playtech
7D
6.4%
1Y
-13.9%
Narrative Update • Jun 11

PTEC: Future Upside Will Rely On Repriced Earnings Power And Buyback Execution

Analysts have lifted the fair value estimate for Playtech from £6.90 to about £7.59, reflecting a series of recent price target increases. These include Deutsche Bank's move to £4.60 and other upward revisions from Jefferies and Citi, supported by updated views on discount rates, revenue growth, profit margins and future P/E assumptions.
MAB
UK£2.48
Mitchells & Butlers
7D
1.0%
1Y
-11.6%
HSW
UK£1.13
Hostelworld Group
7D
3.2%
1Y
-16.9%