UK Hotels Struggled Through First Half of 2025

Hotels in the UK struggled in the first half of 2025 as operators modestly cut room rates to fill beds after two years of strong growth.

Nationwide, occupancy averaged 74.6%, compared to last year’s 75.2%, according to CoStar’s June year-to-date data. Average daily rate declined 0.6% year-over-year to £114.53.

London bore the brunt of the decline. The capital saw new supply hit the market, consumers grew more price-sensitive, and the city hosted fewer major events compared with last year.

Earnings from major operators, plus data from CoStar and Knight Frank, and commentary from JLL, highlight the UK's struggles.

Operators Report Weak Earnings

RevPAR losses were reflected in corporate results:

Travelodge reported a 5.6% decline in UK RevPAR for the first half, with Greater London experiencing a decrease of around 11%. Premier Inn saw its UK RevPAR fall 2.4% in its fiscal first quarter, with London down 5.5%. IHG reported