Up to six hospitality venues could close each day in 2026 if no intervention is introduced to address upcoming business rates increases, according to the trade association for the hospitality sector.
The analysis estimates that 963 restaurants, 574 hotels and 540 pubs could shut over the year, reflecting the financial pressure facing operators across the industry.
According to the figures, the average hotel is expected to see its business rates rise by £28,900 in 2026 and by £205,200 over the next three years, representing an overall increase of 115%. Pubs are also projected to face higher costs, with average rates rising by 15% next year, equivalent to £1,400, and by 76% over three years, or £12,900.
UKHospitality is calling on the Government to increase the business rates discount for hospitality properties from 5p to 20p, the maximum permitted in law.
Kate Nicholls, chair of UKHospitality, said: ‘Staggering increases to business rates will affect the entire hospitality sector and without a hospitality-wide solution, we will see significant business closures.
‘Thousands of venues, particularly neighbourhood restaurants and local hotels, will be forced to close for good as a result of the significant rates rises they’re facing.’
