A new survey shows that 91% of hoteliers say costs have risen significantly since the Autumn Budget, with six in 10 reporting increases of more than 20%.
Grim findings from BWH Hotels, the UK’s largest independent hotel group with more than 200 hotels including the Best Western brand, show that more than a third (36%) of hoteliers expect their costs to rise by more than £100,000.
For some, the impact could be severe – with independently owned hotels facing cost rises of up to £750,000.
Half of the independent hoteliers surveyed attributed the rise to increases in employer national insurance, with 32% saying it was due to increases in national living and the minimum wage.
As a result, 83% of hoteliers said they would be forced to cut staff hours, and 77% believed they would have to increase room and food prices, forcing guests to pay more.
68% of hoteliers will postpone maintenance or upgrades and 64% will have to minimize staff pay increases in an industry already affected by shortages.
Tim Rumney, chief executive of BWH Hotels, said: “The recent budget has delivered a shock to an industry that was just recovering from Covid. Hospitality staff are some of the hardest working people in the UK One, they have to deal with another wave of financial pressures.
“These increases not only drive up prices, they also threaten to worsen customer experience, making it difficult for independent businesses to survive after years of rising interest rates and a cost-of-living crisis.
“We are proud that we are helping hotels respond to external pressures, drive business growth and reduce costs while keeping their unique identity intact.”
When asked what support they needed from the government, 79% of hoteliers called for a reduction in VAT for the hospitality industry. A further 73% support business reforms, while 65% want new employer NIC tiers and exemptions for lower tier taxpayers.
Like British farmers, many independent hoteliers say they are sounding the alarm to local MPs to bring the issue to parliament for debate.
Julie Ashworth, general manager of The George Hotel in Norwich, said: “The government has failed to consider the devastating impact that the minimum wage rise will have on the hospitality industry. It is pushing small businesses to the edge… The government is forcing They take action that is simply unaffordable and push the industry into greater chaos.”
Robert Smith, owner of The Plow and Harrow Hotel in Birmingham and chairman of BWH Hotels GB, said: “While the impact of increases in NMW, National Insurance and business rates is clear and significant, what is really unknown is that these increases “Few hotel companies will be able to make enough profits to absorb these increases, so investment will grind to a halt or stop altogether.”
Another BWH hotelier commented: “This budget will result in fewer jobs, lower wages, significantly reduced investment plans and ultimately a devastating blow to many businesses.”
Tim continued: “In times like these, hoteliers need more than a partner – they need someone who can turn challenges into opportunities, and that’s what we do best.
“The momentum BWH Hotels has shown this year is proof that empowering hoteliers while maintaining their independence – the ‘power of two’ – works. Our five-year plan aims to empower independent hoteliers in We thrive on our uniqueness due to our global reach and scale, and this initiative is already paying dividends.”
For more information about BWH Hotels, please visit www.joinbwhhotels.co.uk
*BWH Hotels survey data based on responses from 38 Best Western hoteliers.
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