UK Hotels Bounce Back, But London and Budget Offerings Underperform

AI Summary

The UK hotel market showed recovery in 2025 with a stronger second half, but London lagged behind other regions and budget hotel offerings continued to underperform. Rising operational costs are squeezing profit margins, leaving many operators unable to grow earnings. The disparity between London and regional performance reflects structural challenges in the capital's hospitality sector.

A stronger second half helped the UK hotel market recover in 2025, but London lagged, and rising costs mean many operators are still struggling to grow profits.