The money hotels made per available room has dropped by 2.4% year-on-year in London, suggesting economic uncertainties are putting the lid on tourism.
After a period of boosted spending power for American travellers, the proposed US tariffs on Chinese imports may further reduce inbound travel from the US and China, according to research from business property adviser Christie & Co.
This means the UK is now reliant on more European and domestic travellers.
Despite this slowdown, the cost per hotel room has grown up in cities like York, Liverpool, Southampton and Edinburgh.
Pierre Ricord, head of hotel consultancy at Christie & Co, said: “As we pass the midpoint of the year, our Hotel Market Review highlights that the UK hotel sector continues to demonstrate extraordinary resilience and adaptability, even in the face of growing complexity across global tourism and funding conditions.
“Investor appetite remains strong, particularly in regional markets where operational models align with cost pressures and evolving guest demand.”
Labour costs have risen, following April’s increases to employer’s National Insurance contributions and a 6.7% minimum wage hike, disproportionately affecting select-service hotels, although the full impact of these measures remains to be seen.
Utility costs have however declined by over 4.5% year-to-date, offering hotel operators some relief.
