Guests planning stays at some of the UK's biggest hotel and holiday park chains are being warned to expect higher prices later this year. Major brands including Butlin's, Travelodge, and Hilton have issued a stark alert, pointing the finger at changes announced by Labour Chancellor Rachel Reeves in her Budget.
Industry Coalition Pleads for Support
The three hospitality giants are part of a coalition of more than 130 leading accommodation providers that have written directly to the Chancellor. In a joint letter, they warn the government that planned hikes to business rates threaten their very viability.
The letter states that while support for pubs is welcome, any solution must encompass the entire hospitality sector. It argues the rate changes represent the "most significant challenge to accommodation providers" in recent times, forcing tough decisions on jobs and future investment.
Kate Nicholls, the Chair of industry body UK Hospitality, echoed the warning. "Hotels and holiday parks are the hardest hit by business rates hikes, facing 115 per cent increases," she said.
Soaring Costs to Hit Consumers
Data from the sector reveals the sheer scale of the impending financial burden. The average hotel's business rates bill is set to soar by 115% over the next three years, adding an eye-watering £205,000 in extra costs.
Ms Nicholls delivered a sobering prediction for holidaymakers and business travellers alike. "Accommodation businesses will unfortunately have no choice but to pass these additional costs onto the consumer," she stated. This move, she cautioned, risks worsening the ongoing cost-of-living crisis and could even drive inflation higher.
Call for a "Whole-Sector Solution"
The coalition's plea to the Treasury is clear: don't leave accommodation providers behind. The letter stresses that the UK's investment case for new hotels is already under immense pressure from high construction costs and fears over potential tourist taxes.
While acknowledging the Chancellor's recognition that hospitality needs further support, Ms Nicholls emphasised the urgency: "It is crucial the entire sector receives that much-needed support." The coming months will determine whether the government's response can prevent these warnings from becoming a reality for guests across the country.
