Photo Credit: JW Marriott Grosvenor House London, UK, Exterior. Marriott International
UK hotels have been excluded from two rounds of government business rates relief. The sector is pushing back, and the numbers show why.
LinkedIn X Facebook Email Gift How might the proposed London Visitor Levy compound the pressure from rising business rates? What would a fairer alternative to the revenue-based rateable value system look like for hotels? Why were hotels specifically excluded from the relief when pubs and live music venues were included? Select a question above or ask something else
Just three days after becoming UK prime minister, Andy Burnham announced tax cuts for a range of businesses. Pubs, clubs, and live music venues all got them. Hotels? They were left out entirely — and they aren’t happy.
“Today’s news is not going to move the needle for most businesses,” said Dominic Paul, CEO of Premier Inn owner Whitbread, in a statement on the day of Burnham’s announcement.
UK hotels already feel the tax code puts them at a disadvantage. They are taxed based on the annual revenue a hotel might expect to generate. The better a hotel performs, the higher its “rateable” value, and the higher its tax bill.
“Unlike most commercial real estate, stronger trading performance can result in higher business rate liabilities, even when operators are facing rising labour, energy, and financing costs,” said Joe Stather, head of EMEA hotels and hospitality research at JLL. “This creates a disconnect between the factors that dri
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Tags: Early Check-In , hilton , hospitality , hotels , marriott , premier inn , taxes , uk , UK government , whitbread , wyndham , yotel
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