Festive Trading 2025: Strong Top-Line, Margin Pressure Remains

The UK hotel sector delivered a solid festive trading period in late 2025, with occupancy and average daily rate (ADR) both improving year-on-year across most markets. November performance strengthened as Christmas party bookings and corporate events returned in volume, providing a strong lead-in to December.

During the core festive period, RevPAR increased nationally, supported by resilient leisure demand and steady corporate travel in major cities. London recorded modest RevPAR growth year-on-year, while regional performance was mixed. Cities such as Aberdeen and Cardiff saw rate growth, whereas Manchester and Leeds experienced softer pricing compared with the previous year. Edinburgh’s festive rates were broadly stable.

Despite improved top-line metrics, profitability remained constrained. Rising labour costs, increased employer contributions, and elevated operating expenses limited GOP growth, meaning margin expansion lagged behind revenue gains.

Overall, festive 2025 demonstrated continued demand resilience in the UK hotel market, but operators entered 2026 focused firmly on cost control and profit optimisation rather than pure revenue growth.