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

U.K. (FTSE) Hospitality Industry Analysis

UpdatedAug 21, 2026
DataAggregated Company Financials
Companies34
  • 7D-4.3%
  • 3M1.6%
  • 1Y-12.6%
  • YTD-3.3%

Over the last 7 days, the Hospitality industry has dropped 4.3%, driven by Compass Group declining 5.3%. Meanwhile, Playtech actually outperformed within the industry, gaining 5.8% in the last week. Overall the industry is down 13% in 12 months. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 21 Aug 2026UK£71.7bUK£73.3bUK£2.1b18.3x34.1x1x
Sun, 19 Jul 2026UK£72.7bUK£73.0bUK£2.1b18.7x35.4x1x
Tue, 16 Jun 2026UK£76.1bUK£73.1bUK£2.1b16.2x36.8x1x
Thu, 14 May 2026UK£72.5bUK£72.7bUK£2.0b15.5x36.3x1x
Sat, 11 Apr 2026UK£65.5bUK£70.3bUK£1.9b14.7x34.7x0.9x
Mon, 09 Mar 2026UK£58.1bUK£58.6bUK£1.4b15x40.5x1x
Wed, 04 Feb 2026UK£56.0bUK£57.6bUK£1.6b13.2x36.1x1x
Fri, 02 Jan 2026UK£60.7bUK£58.2bUK£1.6b13.6x38.4x1x
Sun, 30 Nov 2025UK£60.5bUK£58.7bUK£1.6b16.3x36.8x1x
Tue, 28 Oct 2025UK£65.8bUK£56.7bUK£1.3b16.5x50.9x1.2x
Thu, 25 Sep 2025UK£66.6bUK£58.5bUK£1.3b15.4x52.4x1.1x
Sat, 23 Aug 2025UK£70.0bUK£58.4bUK£1.3b17.2x54.3x1.2x
Mon, 21 Jul 2025UK£69.3bUK£58.4bUK£1.4b17.4x48.8x1.2x
Wed, 18 Jun 2025UK£68.1bUK£58.3bUK£1.4b18.7x48.1x1.2x
Fri, 16 May 2025UK£69.1bUK£58.4bUK£1.5b18.2x47.4x1.2x
Sun, 13 Apr 2025UK£63.6bUK£57.6bUK£1.4b17.5x46.9x1.1x
Tue, 11 Mar 2025UK£67.3bUK£58.8bUK£1.6b14.5x41.4x1.1x
Thu, 06 Feb 2025UK£71.8bUK£59.8bUK£1.7b16x42.7x1.2x
Sat, 04 Jan 2025UK£71.3bUK£60.0bUK£1.7b20.2x42.8x1.2x
Mon, 02 Dec 2024UK£72.3bUK£59.0bUK£1.6b19.3x45.8x1.2x
Wed, 30 Oct 2024UK£69.6bUK£57.7bUK£1.7b23.3x41.1x1.2x
Fri, 27 Sep 2024UK£69.2bUK£56.7bUK£1.7b23.1x40.8x1.2x
Sun, 25 Aug 2024UK£66.7bUK£57.2bUK£1.7b23.5x39.1x1.2x
Tue, 23 Jul 2024UK£63.0bUK£57.6bUK£1.2b21.6x52.1x1.1x
Thu, 20 Jun 2024UK£63.0bUK£58.1bUK£1.3b21.3x50.4x1.1x
Sat, 18 May 2024UK£93.9bUK£76.4bUK£1.1b21.7x84.9x1.2x
Mon, 15 Apr 2024UK£90.8bUK£65.8bUK£80.8m21.2x1124.5x1.4x
Wed, 13 Mar 2024UK£93.9bUK£65.3bUK£726.0m20.9x129.3x1.4x
Fri, 09 Feb 2024UK£95.5bUK£65.0bUK£1.1b21.6x85.8x1.5x
Sun, 07 Jan 2024UK£89.3bUK£66.2bUK£980.6m21.2x91.1x1.3x
Tue, 05 Dec 2023UK£83.8bUK£65.9bUK£1.1b20.4x77.8x1.3x
Thu, 02 Nov 2023UK£86.0bUK£64.3bUK£1.0b20.4x82.1x1.3x
Sat, 30 Sep 2023UK£86.3bUK£64.0bUK£994.5m23.3x86.8x1.3x
Mon, 28 Aug 2023UK£89.3bUK£63.7bUK£1.0b23.8x87.6x1.4x
Price to Earnings Ratio

87.6x


Total Market Cap: UK£89.3bTotal Earnings: UK£1.0bTotal Revenue: UK£63.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Hospitality Industry Price to Earnings3Y Average 100.7x202420252026
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 34.1x which is lower than its 3-year average PE of 101x.
  • The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.98x.
Past Earnings Growth
  • The earnings for companies in the Hospitality industry have grown 27% per year over the last three years.
  • Revenues for these companies have grown 4.8% 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 Market-0.22%
Consumer Discretionary-3.60%
Hospitality-4.35%
Casinos and Gaming0.39%
Leisure Facilities-1.04%
Restaurants-4.81%
Hotels, Resorts and Cruise Lines-5.28%
Industry PE
  • Investors are most optimistic about the Restaurants industry even though it's trading below its 3-year average PE ratio of 32.0x.
    • Analysts are expecting annual earnings growth of 11.9%, 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 63% over the next 5 years.
  • This is better than its past earnings decline of 13% 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£3.925.8%
+UK£60.0m		-6.9%PS1.7x
IHG InterContinental Hotels GroupUS$159.800.3%
+US$81.2m		35.1%PE33.1x
PPH PPHE Hotel GroupUK£15.743.6%
+UK£22.6m		-5.3%PE50x
RNK Rank GroupUK£1.103.8%
+UK£18.7m		-19.3%PE17.2x
FSTA Fuller Smith & TurnerUK£7.561.1%
+UK£4.2m		35.0%PE18.8x

Latest News

IHG
US$159.80
InterContinental Hotels Group
7D
0.3%
1Y
35.1%
TRN
UK£1.90
Trainline
7D
-24.2%
1Y
-28.8%
CPG
US$30.80
Compass Group
7D
-5.3%
1Y
-12.1%
Narrative Update • Aug 18

CPG: Updated Fair Value And P/E Framework Will Guide Future Returns

Analysts have lifted their fair value estimate for Compass Group to $32.00, with the modest change supported by updated assumptions on discount rate, revenue growth, profit margin and future P/E, even as one recent price target moved slightly lower to $40.00 from $40.50. What’s in the News for Compass Group No recent Compass Group specific news stories or key developments were provided in the available sources up to 17 Aug 2026.
RNK
UK£1.10
Rank Group
7D
3.8%
1Y
-19.3%
ENT
UK£5.37
Entain
7D
-1.6%
1Y
-38.8%
VLRM
UK£0.029
Valereum
7D
1.8%
1Y
-6.6%
TMO
UK£0.072
Time Out Group
7D
7.4%
1Y
-50.8%
PPH
UK£15.74
PPHE Hotel Group
7D
3.6%
1Y
-5.3%
Narrative Update • Aug 06

PPH: Freehold Acquisition And Dividend Policy Will Support Future Upside

Analysts have adjusted their price target on PPHE Hotel Group from £20.50 to £18.50, citing updated assumptions that include a revised discount rate of 11.83%, revenue growth of 3.58% and a P/E of 22.25x, alongside a profit margin forecast of 9.20%. What's in the News PPHE Hotel Group concluded its Strategic Review and Formal Sales Process on 19 June 2026 and confirmed it is not in discussions with any party regarding a potential sale of the company, according to the Board's Independent Committee.
GRG
UK£18.11
Greggs
7D
-1.9%
1Y
13.9%
Narrative Update • Aug 05

GRG: Refined Expectations And Cost Efficiency Constraints Will Shape Balanced Forward Returns

Analysts have lifted their fair value estimate for Greggs to about £17.77 per share from roughly £17.01, citing updated price targets that balance higher Street forecasts, including a new £2,210 target alongside a £1,960 target, with views that future cost savings may be less accessible after the recent share price move. Analyst Commentary Recent research on Greggs shows a split in opinion on how much upside is left in the share price following the recent rally.
SSPG
UK£2.03
SSP Group
7D
-5.3%
1Y
29.0%
PTEC
UK£3.92
Playtech
7D
5.8%
1Y
-6.9%
Narrative Update • Jul 24

PTEC: Higher Forward P/E Assumptions Will Pressure Overvalued Shares

The analyst price target for Playtech has been raised, with the updated fair value estimate moving from £2.15 to £2.88 per share, as analysts point to adjusted assumptions on revenue growth, discount rate, profit margin and future P/E in light of recent target increases from several banks. Analyst Commentary Recent Street research on Playtech shows a split in opinion, with several firms lifting their price targets but expressing different levels of conviction on where the stock should trade.
WTB
UK£24.30
Whitbread
7D
-3.0%
1Y
-22.6%
YNGA
UK£8.66
Young's Brewery
7D
-3.7%
1Y
2.6%
FSTA
UK£7.56
Fuller Smith & Turner
7D
1.1%
1Y
35.0%
MAB
UK£2.79
Mitchells & Butlers
7D
-1.4%
1Y
4.7%