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The UK hotel sector saw positive festive trading in 2025, with occupancy and room rates up year-on-year across most markets. However, rising labour and operating costs limited profit growth, reinforcing the industry’s focus on margin management heading into 2026.
The UK hotel market in 2025 has entered a phase of stabilisation, with occupancy holding near pre-pandemic levels and ADR growth moderating. While regional cities continue to show resilience, rising operating costs are placing pressure on margins, shifting focus from rapid recovery to disciplined revenue and profit management.