Hotel owners in Bristol are entering the new year with a sense of cautious optimism, anticipating that 2026 will bring improved business despite a landscape of persistent financial pressures.
Festive Season Stability and First Quarter Nerves
Adam Flint, chair of the Bristol Hoteliers Association (BHA), reported that the final quarter of 2025 was generally strong for the industry. The festive period and year-end were stable overall, though central Bristol hotels found the season a slight struggle. In contrast, venues located outside the city centre saw a welcome boost from Christmas party bookings throughout November and December.
Mr Flint acknowledged that the sector is "always nervous" during the first quarter, a traditional time for a business slowdown. He highlighted specific concerns for early 2026. "It is usually the time when many companies can tighten their purse strings ahead of the end of the tax year," he explained, noting that businesses also brace for changes like the national living wage increase due in April. This rise will impact hotel operating costs as well as the budgets of their corporate clients, presenting a clear trading challenge.
Major Events to Drive Optimistic Outlook
Despite these headwinds, the BHA points to several key events in the calendar that are expected to stimulate demand. The Bristol Light Festival in February is a major annual draw. Furthermore, the Six Nations Rugby tournament, held in nearby Cardiff during February and March, historically generates increased interest and occupancy for Bristol accommodations.
"As we have seen in previous years with major music events in the Welsh capital, there is often a positive knock-on effect here in Bristol when events happen in Cardiff which draw huge crowds," said Mr Flint. He also highlighted that Cheltenham Festival week consistently creates significant demand for hotel rooms in the region.
A Balanced View for the Year Ahead
The overall sentiment for Bristol's hospitality sector is one of hopeful vigilance. "So overall, there is cause for cautious optimism, but we can’t afford to be complacent, as things like the wage increases will undoubtedly have an impact," Flint stated. He emphasised Bristol's enduring appeal to both corporate travellers and tourists, supported by a wide range of special events throughout the year.
Concluding on a determined note, the BHA chair summed up the sector's mindset: "We are trying to be positive, knowing there are still many challenges facing us, but we do still hope 2026 will be a happy new year for Bristol’s hotels." The industry is positioning itself to capitalise on opportunities while proactively managing the forthcoming financial pressures.
