With a new hotel opening at a rate of more than one a week, branded budget hotels remain the most dynamic segment of the UK hotel industry.

During 2010, a total of 54 hotels were added to the branded budget supply in the UK with 5,446 new rooms coming on stream, figures from Budget Hotels 2011 UK reveals.

The market remains dominated by two players with Premier Inn remaining the biggest brand with a 37% share by rooms and Travelodge having almost 27%. Travelodge was the fastest growing in the past year, however, and added 3,833 rooms compared to Premier Inn's 1,043.

The third biggest brand in the UK, Holiday Inn Express, fell further behind the biggest two players by adding just 540 rooms. Express has a market share of just over 11% in rooms terms.

Revenue per available room (RevPAR) for branded budget hotels improved by 4.7% during the year, driven entirely by improved occupancy which rose 3.9 percentage points to 71.6%. Average achieved rate was down 1.0% to £50.33. London RevPAR was up 12.1% against an increase of 2.9% outside of London.