Red Roses Victory Extends Summer Hotel Demand In September

UK hotels managed to stretch out summer demand in September, boosted by the success of the Red Roses in the Women’s Rugby World Cup, according to the RSM Hotels Tracker.

The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy of UK hotels was up from 82.8% to 85% in September year-on-year, and increased from 83.7% to 87.2% in London.

Average daily rates (ADR) of occupied rooms also rose in the UK from £157.76 to £164.61 in September year-on-year and jumped from £220.14 to £232.48 in London.

As a result, gross operating profits of UK hotels increased from 41% to 41.8% in September year-on-year and from 44.4% to 45.7% in London.

Chris Tate, partner and head of hotels at RSM UK, comments:
“Strong hotel demand seen during the summer carried on in September, with occupancy and room rates firmly outpacing last year’s results. There was a marked improvement in gross operating profits year-on-year for only the second time since the National Insurance rise in April, which has continually hit the bottom line of hotels.

“September’s data highlights that demand in the UK staycation market remains strong, and international and business travel is back in full force. England hosting the 2025 Women’s Rugby World Cup, resulted in a double victory for both the Red Roses and the UK’s hotel market. It’s clear that such major sport events bring a much-needed boost to the hotel sector, which trickles down to the wider leisure and hospitality industry and economy.

“However, our latest Focus on Asset Classes data shows the fortunes of the hotel sector aren’t evenly distributed, with luxury winning out and the budget market falling behind. The hotel industry continues to come under pressure in the face of rising staff costs, high inflation and greater competition – making demand even more important. All eyes are now on the budget for measures that encourage hotel spend and avoid hitting consumers’ discretionary income.”

Thomas Pugh, economist at RSM UK, said:
“A strong showing by the hotel sector is a good sign that consumers weren’t affected by growing speculation at the end of the third quarter. Indeed, strength in the hotel sector may help to offset weakness elsewhere as the manufacturing and construction sectors continue to struggle.

“Of course, the big question now is whether the increasing speculation about the budget, which is likely to reach fever pitch in November, will derail September’s resilience.

“Looking ahead, we expect the economy to have grown by 0.2% q/q in Q3, but we suspect that uncertainty around the budget will mean growth stagnates in Q4. What’s more, if the budget contains a fiscal contraction of £30-£40bn as we expect, it will weigh on household incomes and consumer spending next year, especially of wealthier consumers. However, it will also lead to a sharp drop in inflation and quicker interest rate cuts, which should offset some of the pain from the budget.”