1、UK HotelTrading Performance Reviewhttps:/www.knightfrank.co.uk/research/sectors/hotels2026A year of two halves in 2025,but one of steadfast resilience.Thebiggest challenge for the year ahead will be protecting the Net Operating Income,as the strong rise in business rates is expected to erode margins

2、 across all segments of the UK hotel market.Confronting the headwinds and building resilience have been key themes which the UK hotel sector has battled in recent years,whilst simultaneously driving its recovery in a post-pandemic era.Despite the unsettled and challenging trading environment encount

3、ered in 2025,the sector has shown steadfast resilience,with a much more robust performance achieved during the second half of the year.As a result,the steep declines in“Despite the unsettled and challenging trading environment encountered this past year,the sector has shown steadfast resilience,with

4、 a much more robust performance achieved during the second half of the year.”ForewordAmid low revenue growth and sustained significant cost pressures,we evaluate how the UK hotel market fared in 2025 and consider the broader implications for market conditions in the year ahead.The July London Victor

5、ia,opened July 2025rates,rising employment costs,and new regulatory obligations.Together,these pressures are likely to temper the pace of growth in the UK hotel market over the near term,and increase the likelihood of declining profitability and margin erosion across the sector.Many hoteliers will,h

6、owever,be looking to sustain the positive trading momentum that underpinned the strong finish to 2025.While budgeting remains cautious across much of the sector,there is measured optimism that 2026 will bring continued revenue growth(building on last years comparatively resilient performance)support