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Boutique Hotel News supported an event organised by Leumi UK which focussed on the post-Budget landscape and the future of UK hotels.
The event opened with insights presented by Joe Stather, managing director of Horwath HTL, setting the scene around demand, consumer sentiment, hotel performance, and the impact of key Budget announcements for the sector.
Eloise Hanson, editor of BHN, then facilitated a roundtable discussion on the challenges and opportunities shaping the year ahead.
Key takeaways from the discussion include:
- The UK hotel market remains resilient, supported by strong demand, buoyant occupancy and consumer prioritisation of travel. A weak sterling continues to boost inbound tourism and international investment appetite.
- Divergence between high-performing assets and those struggling to compete is widening – differentiation is increasingly rewarded while mediocre product is being penalised.
- Flat revenues equate to margin erosion, with the impact of payroll inflation, business rate increases and energy bills continuing to weigh heavily. Owners are adjusting by consolidating operations, negotiating supplier contracts and selectively reducing services where guest experience can be protected.
- Digital transformation – from smart check-in to upselling tools – is perceived as a major opportunity to increase efficiencies and support customer conversion.
- Restaurants remain a difficult P&L line for many hotels. Partnerships, leased-out concepts and simplified propositions are becoming more attractive. Breakfast remains a contentious cost centre.
- Extended-stay accommodation continues to outperform on margins, though investor and lender education around room configuration and operating models is still required.
- Debt providers are underwriting with greater headroom to accommodate cost volatility and revenue uncertainty. Location and operator capability remain core credit criteria. While traditional leverage remains constrained, short-term financing structures are supporting transactions where a clear refinancing route exists.
Companies represented included senior leaders across hotel operations, development, advisory and lending.
The event was held at Leumi UK’s headquarters in London, hosted by Soraya Shamji and Steve Crosswell.
For further information about how BHN can support your business, please contact Katie Houghton at katie@internationalhospitality.media / +34 711 02 42 31.
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