Travelodge has savaged Labour’s attack on the hospitality industry, as the resort giant is set to see its business charges invoice rise to £50million per 12 months. CEO Jo Boydell warned that Labour’s latest insurance policies have made trading situations “more challenging” after the sector missed out on contemporary business charges aid announced on Tuesday.
In a trading replace on Wednesday, a day after the Treasury announced extra tax aid for pubs and music venues, Ms Boydell said Labour is “neglecting the broader hospitality sector”. She added: “Higher charges and a lack of bespoke support, collectively with wider regulatory price will increase sends the message that the Government does not perceive the financial worth that our sector delivers.”
Travelodge said its business rates bill is set to increase from £38million over the past year to £50 million a year in 2026 due to changes coming into force in April, with “further significant rises” in the following years as transitional relief measures are phased out.
Trade organisation UK Hospitality warned that hotel business rates are set to increase by 115% by 2029 after changes to the commercial property tax announced in November’s Budget.
The Treasury introduced a lower multiplier for business rates, but this was more than offset by the removal of a Covid-era 40% discount on business rates bills for hospitality, leisure and retail businesses, as well as new property valuations.
Transitional reliefs were unveiled to manage increases in rates bills over the next three years after the removal of sector discounts.
However, on Tuesday, the Government said pubs and live music venues in England will benefit from 15% off their business rates bills from April, as part of fresh support, following warnings of potential closures and job losses.
Travelodge also warned that other Government policies, such as higher employment costs linked to the increase in the national living wage and “new regulatory necessities”, are headwinds weighing on the sector’s growth.
It came as the 625-strong hotel business reported that group revenues increased by 0.7% to £1.04 billion for the year to December 31 2025.
This was supported by a “good” efficiency in the ultimate quarter of the 12 months, which saw revenues raise by 4.3% to £261 million.
Travelodge said it was buoyed by improved trading situations in the UK as it benefited from occasions such as World Travel Market in London’s Excel and sports activities fixtures, including England’s autumn rugby worldwide against Australia at Twickenham.
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