None
EN
Hotel demand ‘holds strong’ while staff costs eat into profit
['Amber Murray', 'Retail Reporter', '.Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow', 'Class', 'Wp-Block-Co-Authors-Plus', 'Display Inline', '.Wp-Block-Co-Authors-Plus-Avatar', 'Where Img', 'Height Auto Max-Width', 'Vertical-Align Bottom .Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow .Wp-Block-Co-Authors-Plus-Avatar']
City AM
Hotel demand ‘holds strong’ while staff costs eat into profitOccupancy of hotels has risen but higher staff costs mean profitability has fallenDemand for UK hotels rose in August, although higher staff costs means that hoteliers saw profit drop.
“August was a mixed month for the UK hotel sector,” Chris Tate, partner and head of hotels at RSM UK, said.
UK hotel investment is estimated to reach £1.04bn in the third quarter of 2025, a 28 per cent year-on-year increase, with buyers particularly interested in London hotels, according to Savills.
Savills attributed this surge to growing confidence in the UK market and a strategic push to expand platforms.
David Kellet, head of hotel Capital Markets EMEA at Savills, said: “While the first half of the year was defined by operational and investor uncertainty in the UK hotel market, sentiment has stabilised through the third quarter… We look forward to what’s ahead for the UK hotel market.”