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U.K. (FTSE) Hospitality Industry Analysis

UpdatedJul 22, 2026
DataAggregated Company Financials
Companies34
  • 7D-1.0%
  • 3M2.7%
  • 1Y-15.7%
  • YTD-3.4%

Over the last 7 days, the Hospitality industry has dropped 1.3%, driven by a pullback from Compass Group of 2.0%. However, the industry is down 11% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 22 Jul 2026UK£71.8bUK£73.0bUK£2.1b18.9x35x1x
Fri, 19 Jun 2026UK£74.3bUK£73.1bUK£2.1b16.2x35.9x1x
Sun, 17 May 2026UK£71.9bUK£72.7bUK£2.0b15.4x36x1x
Tue, 14 Apr 2026UK£65.0bUK£70.3bUK£1.9b14.7x34.4x0.9x
Thu, 12 Mar 2026UK£57.2bUK£58.5bUK£1.4b14.9x40x1x
Sat, 07 Feb 2026UK£55.8bUK£57.9bUK£1.6b13.1x35.8x1x
Mon, 05 Jan 2026UK£60.1bUK£58.2bUK£1.6b13.4x38x1x
Wed, 03 Dec 2025UK£59.8bUK£58.9bUK£1.6b16.2x36.2x1x
Fri, 31 Oct 2025UK£63.9bUK£57.2bUK£1.3b16.1x48.9x1.1x
Sun, 28 Sep 2025UK£68.0bUK£58.6bUK£1.3b15.9x53.3x1.2x
Tue, 26 Aug 2025UK£70.0bUK£58.4bUK£1.3b17.2x54.3x1.2x
Thu, 24 Jul 2025UK£72.2bUK£58.0bUK£1.4b17.3x51.3x1.2x
Sat, 21 Jun 2025UK£67.2bUK£58.3bUK£1.4b18.8x47.5x1.2x
Mon, 19 May 2025UK£69.2bUK£58.5bUK£1.5b18x47.4x1.2x
Wed, 16 Apr 2025UK£65.4bUK£57.3bUK£1.3b17.8x48.7x1.1x
Fri, 14 Mar 2025UK£66.9bUK£58.6bUK£1.6b14.8x41.1x1.1x
Sun, 09 Feb 2025UK£71.9bUK£60.1bUK£1.7b15.7x42.6x1.2x
Tue, 07 Jan 2025UK£71.1bUK£59.7bUK£1.7b20.7x43x1.2x
Thu, 05 Dec 2024UK£74.2bUK£59.3bUK£1.6b18.3x45.2x1.3x
Sat, 02 Nov 2024UK£69.7bUK£57.9bUK£1.7b23.2x40.9x1.2x
Mon, 30 Sep 2024UK£69.6bUK£56.8bUK£1.7b23.2x41x1.2x
Wed, 28 Aug 2024UK£66.7bUK£57.0bUK£1.7b23.4x39.2x1.2x
Fri, 26 Jul 2024UK£64.5bUK£57.8bUK£1.2b21.3x53x1.1x
Sun, 23 Jun 2024UK£63.5bUK£58.3bUK£1.2b21.7x51.1x1.1x
Tue, 21 May 2024UK£93.8bUK£67.4bUK£169.1m21.8x554.7x1.4x
Thu, 18 Apr 2024UK£88.7bUK£65.8bUK£81.5m21.1x1088.2x1.3x
Sat, 16 Mar 2024UK£94.3bUK£65.3bUK£898.1m20.8x105x1.4x
Mon, 12 Feb 2024UK£96.6bUK£65.0bUK£1.1b21.7x86.8x1.5x
Wed, 10 Jan 2024UK£89.9bUK£66.2bUK£980.7m21.3x91.6x1.4x
Fri, 08 Dec 2023UK£85.7bUK£66.2bUK£982.5m22.1x87.2x1.3x
Sun, 05 Nov 2023UK£87.3bUK£64.3bUK£1.0b20.3x83.3x1.4x
Tue, 03 Oct 2023UK£86.3bUK£64.0bUK£997.3m23.4x86.6x1.3x
Thu, 31 Aug 2023UK£90.0bUK£63.7bUK£1.0b23.8x88.3x1.4x
Sat, 29 Jul 2023UK£94.3bUK£61.8bUK£1.2b24.6x79.4x1.5x
Price to Earnings Ratio

79.4x


Total Market Cap: UK£94.3bTotal Earnings: UK£1.2bTotal Revenue: UK£61.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Hospitality Industry Price to Earnings3Y Average 101.9x202420252026
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 35.4x which is lower than its 3-year average PE of 102x.
  • 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 5.7% 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 Market0.56%
Consumer Discretionary0.50%
Hospitality-1.05%
Hotels, Resorts and Cruise Lines2.78%
Leisure Facilities-0.039%
Restaurants-1.44%
Casinos and Gaming-1.82%
Industry PE
  • Investors are most optimistic about the Restaurants industry even though it's trading below its 3-year average PE ratio of 32.3x.
    • Analysts are expecting annual earnings growth of 12.0%, 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 75% 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
WTB WhitbreadUK£24.054.7%
+UK£178.8m		-25.0%PE18.9x
MAB Mitchells & ButlersUK£2.754.0%
+UK£62.4m		-3.3%PE8.9x
GRG GreggsUK£15.902.1%
+UK£32.6m		-6.5%PE13.3x
JDW J D WetherspoonUK£7.544.0%
+UK£30.0m		-3.3%PE14.1x
YNGA Young's BreweryUK£9.324.1%
+UK£22.5m		-0.6%PE20.2x

Latest News

EVOK
UK£0.45
Evoke
7D
-3.7%
1Y
-35.3%
Narrative Update • Jul 21

EVOK: Raised Outlook Suggests Future Upside From All Share Acquisition Terms

Analysts have lifted their price target on Evoke to £0.52 from £0.34, citing updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E, which they say support a higher valuation framework. What's in the News for Evoke Bally's Intralot S.A. and Evoke agreed terms for a recommended all share acquisition of Evoke's entire issued and to be issued share capital.
CPG
US$31.07
Compass Group
7D
-2.0%
1Y
-13.5%
Narrative Update • Jul 20

CPG: Revised Fair Value And P/E Assumptions Will Shape Returns

Analysts have lifted their price target on Compass Group from $28.57 to $31.00, citing updated assumptions for fair value, discount rate, revenue, profit margin, and future P/E that modestly adjust the risk and return profile investors may want to consider. What’s in the News for Compass Group No recent Compass Group company specific news items were identified in the provided sources, so the updated price target currently reflects analyst model adjustments rather than newly disclosed events.
IHG
US$155.55
InterContinental Hotels Group
7D
-1.2%
1Y
33.0%
Narrative Update • Jul 20

IHG: RevPAR Momentum And Net Unit Growth Will Face Multiple Compression Risk

InterContinental Hotels Group's updated fair value estimate has moved from $104.18 to $108.00 as analysts factor in higher Street price targets, with supporting commentary pointing to stronger RevPAR trends, improving net unit growth momentum, and a reduced valuation gap to U.S. peers. Analyst Commentary Recent Street research on InterContinental Hotels Group highlights a mix of optimism on growth drivers such as RevPAR trends and net unit growth, alongside a more measured tone on valuation, particularly when compared with U.S. peers like Hilton and Marriott.
RNK
UK£0.93
Rank Group
7D
-3.6%
1Y
-40.3%
PTEC
UK£3.63
Playtech
7D
-7.4%
1Y
-6.8%
Narrative Update • Jul 10

PTEC: Future Upside Will Depend On Executing Earnings Power Repricing

Analysts have nudged their fair value estimate for Playtech lower from £7.59 to £6.89, while still lifting published price targets to £4.45 and £4.60. This reflects updated assumptions for discount rate, revenue growth, profit margins and future P/E multiples.
YNGA
UK£9.32
Young's Brewery
7D
4.1%
1Y
-0.6%
PPH
UK£15.54
PPHE Hotel Group
7D
-4.3%
1Y
-1.4%
Narrative Update • Jul 06

PPH: Higher Margins And Dividend Support Will Drive Future Upside

Analysts have raised their price target on PPHE Hotel Group from £18.33 to £21.00, citing updated assumptions. These include steadier revenue trends, a higher projected profit margin of 16.75%, and a lower future P/E of 16.17x as key drivers of the change.
GRG
UK£15.90
Greggs
7D
2.1%
1Y
-6.5%
MARS
UK£0.53
Marston's
7D
-4.7%
1Y
23.2%
New Narrative • Jun 27

Format Risks Around Format Rollout And Margins Will Define Future Pub Returns

Catalysts About Marston's Marston's operates a large, predominantly freehold pub estate in the U.K., focused on local, community-led formats. What are the underlying business or industry changes driving this perspective?
FSTA
UK£7.58
Fuller Smith & Turner
7D
3.8%
1Y
28.9%
DOM
UK£1.94
Domino's Pizza Group
7D
1.3%
1Y
-20.6%
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.
OTB
UK£1.77
On the Beach Group
7D
4.1%
1Y
-37.8%
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.
WTB
UK£24.05
Whitbread
7D
4.7%
1Y
-25.0%
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.
JDW
UK£7.54
J D Wetherspoon
7D
4.0%
1Y
-3.3%
Analysis Article • Jun 11

Is It Time To Consider Buying J D Wetherspoon plc (LON:JDW)?

J D Wetherspoon plc ( LON:JDW ), might not be a large cap stock, but it saw a decent share price growth of 17% on the...
MAB
UK£2.75
Mitchells & Butlers
7D
4.0%
1Y
-3.3%
SSPG
UK£1.85
SSP Group
7D
-1.2%
1Y
5.5%