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The occupancy of UK hotels rose from 82.7% to 83% in June year-on-year, and from 86.4% to 88.1% in London, close to a record June figure of 90% in 2019, according to data from RSM.
However, gross operating profits still dropped from 50.9% in June 2024 to 47.8% in June 2025 in London and from 44.7% to 42.1% in the UK.
It comes as total hotel payroll (per available room) grew in London from £65.53 to £68.58 in June year-on-year and £48.07 to £50.34 in the UK.
Alongside this the average daily rate (ADR) of occupied rooms in London was down from £270.96 to £252.10 in June year-on-year, and decreased from £174.56 to £166.67 in the UK.
Chris Tate, partner and head of hotels at RSM UK, said: “It was a great start to the summer for hoteliers, with an encouraging rise in demand and strong occupancy levels in June. But as cost pressures continue to bite, it’s now even more important that hoteliers are able to sustain this demand.
“Despite selling more rooms, rates are going in the opposite direction, as operators lower their prices to stimulate and capture demand. The good news is that consumers still want to travel and book their hotel stays, but they have greater price constraints, which is dampening room rates.”
Thomas Pugh, economist at RSM UK, added: “After contracting in April and May due to the double whammy of tax and tariffs, strong hotel occupancy in June is another signal that the economy started to rebound at the end of the quarter. Even so, the economy will have done little more that stagnate in Q2.
“Looking ahead, the outlook for consumer spending growth is less rosy than it has been in the first half of the year. Inflation has risen to 3.6% and will rise further over the summer, mainly driven by tax rises, higher utility bills and now more expensive petrol. That will eat into consumers’ disposable income. At the same time, the labour market is clearly cooling which will weigh on wage growth and employment over the rest of the year.”
The occupancy of UK hotels rose from 82.7% to 83% in June year-on-year, and from 86.4% to 88.1% in London, close to a record June figure of 90% in 2019, according to data from RSM.
However, gross operating profits still dropped from 50.9% in June 2024 to 47.8% in June 2025 in London and from 44.7% to 42.1% in the UK.
It comes as total hotel payroll (per available room) grew in London from £65.53 to £68.58 in June year-on-year and £48.07 to £50.34 in the UK.
Alongside this the average daily rate (ADR) of occupied rooms in London was down from £270.96 to £252.10 in June year-on-year, and decreased from £174.56 to £166.67 in the UK.
Chris Tate, partner and head of hotels at RSM UK, said: “It was a great start to the summer for hoteliers, with an encouraging rise in demand and strong occupancy levels in June. But as cost pressures continue to bite, it’s now even more important that hoteliers are able to sustain this demand.
“Despite selling more rooms, rates are going in the opposite direction, as operators lower their prices to stimulate and capture demand. The good news is that consumers still want to travel and book their hotel stays, but they have greater price constraints, which is dampening room rates.”
Thomas Pugh, economist at RSM UK, added: “After contracting in April and May due to the double whammy of tax and tariffs, strong hotel occupancy in June is another signal that the economy started to rebound at the end of the quarter. Even so, the economy will have done little more that stagnate in Q2.
“Looking ahead, the outlook for consumer spending growth is less rosy than it has been in the first half of the year. Inflation has risen to 3.6% and will rise further over the summer, mainly driven by tax rises, higher utility bills and now more expensive petrol. That will eat into consumers’ disposable income. At the same time, the labour market is clearly cooling which will weigh on wage growth and employment over the rest of the year.”
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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