The UK hotels sector continues to demonstrate resilience despite a challenging operating environment. During HaysMac, Keystone Law and Leumi UK’s annual Hotelier’s Lunch in September 2026, we surveyed over 90 hotel operators to understand their outlook for the year ahead.
Our findings reveal a sector that remains optimistic about growth, while grappling with mounting cost pressures, workforce challenges and regulatory change.
1. Confidence remains high
Almost two-thirds (62%) of respondents are optimistic about the UK’s hotel market prospects over the next 12 months, highlighting continued confidence in the sector’s long-term fundamentals.
2. Costs remain the biggest challenge
Rising operating costs emerged as the dominant concern, with 88% of operators identifying them as a major challenge and more than half (54%) strongly agreeing.
3. ADR growth remains achievable
Despite wider economic uncertainty, 63% of respondents are confident they can maintain or increase average daily room rates over the coming year.
4. Technology is now business-critical
Technology received the strongest consensus of any survey topic, with 91% agreeing it will play an increasingly important role in improving efficiency and profitability.
5. Labour shortages persist
Nearly two-thirds (64%) continue to face recruitment and staffing challenges, reinforcing the need for retention strategies, training and automation.
6. Concerns over visitor levies
The potential expansion of visitor levies remains a significant issue, with 68% expressing concern about their impact on the sector.
Looking ahead
The survey results reveal a sector that remains fundamentally optimistic but increasingly focused on operational resilience. While confidence in market growth and ADR performance remains strong, operators are navigating a business environment where profitability cannot be taken for granted.
Rising costs, ongoing recruitment challenges and evolving regulatory pressures are prompting management teams to look more closely at how they drive efficiency, protect margins and deliver sustainable growth. Against this backdrop, technology is no longer viewed simply as a tool for enhancing guest experience, but as a critical enabler of productivity, data-driven decision-making and long-term competitiveness.
As the sector continues to evolve, those businesses that successfully balance commercial performance with operational discipline are likely to be best placed to thrive. For operators, investors and advisors alike, the message from this year’s survey is clear: whilst challenges remain, the industry’s confidence in its ability to adapt and capitalise on future opportunities is undiminished.
You can view the full survey results in the pdf below.
