The data also shows that 15 major chains in the restaurant and retail sectors have gone into administration since April 2017, compared to the 16 similar companies that went into administration in 2008-09.
Colliers has analysed the business rates rises of 93 London hotels that saw the highest rises in their rateable value (RV) following the 2017 Revaluation.
Hotels in Central London will receive a total rates bill of £12.2 million this year, compared to £4.8 million in 2016/7- more than two and a half times higher. The table below shows some of the rises individual hotels have seen which have been (and are still) steep. The biggest rise is the Four Seasons in EC3 which saw its rates bills rise from £176,000 in the year before the Revaluation to a bill of over £570,000 this year and the Marriot in W14 who paid £414,500 in 2016/7 but will see a rates bill of over £1 million shortly. That’s a lot of extra rooms to fill at a time when hotels are suffering from the impact of other rising costs including staffing and food costs and the ever-growing competition from Airbnb.
Hotels: Business Rates Rises Since the 2017 Revaluation
London Hotels with a Rateable Value (RV) more than £350,000
|Hotel||Rates Bill 2016/7 *||Rates Bill
|Four Seasons, EC3||£176,000||£316,000||£401,500||£570,250||+224%|
|St James Hotel, SW1||£80,000||£128,000||£167,000||£244,500||+205%|
|Premier Inn, SE9||£75,000||£120,000||£156,000||£228,500||+205%|
|Zetter Townhouse, EC1||£50,000||£80,500||£104,500||£152,250||+206%|
|Westley Hotel, Euston NW1||£92,500||£145,000||£190,000||£279,500||+202%|
|isis budget hotel E1||£136,000||£210,000||£276,300||£407,000||+199%|
|Arriva Hotel Wc1||£71,250||£110,000||£145,500||£210,250||+195%|
|Holiday Inn Express W14||£ 163,250||£249,250||£329,000||£440,000||+169%|
|MStay Hyde Park Hotel||£74,500||£113,000||£149,000||£186,500||+153%|
|Marriot Residence Inn W14||£414,500||£628,250||£830,400||£1,048,000||+153%|
|Dean Street Town House||£223,000||£336,750||£445,250||£547,500||+146%|
|Holiday Inn, E1||£207,000||£312,500||£413,250||£507,000||+145%|
|Premier Inn Chiswick||£202,500||£306,000||£404,500||£492,500||+143%|
|Dorchester Collection, W1||£301,000||£452,400||£599,000||£704,750||+134%|
*Pre 2017 Revaluation **Third set of rises post Revaluation
The reason for the hike is because those with high-value properties in England (over £100,000 Rateable Value), which constitutes a large part of the London hotel world are affected by ‘upwards phasing’ in their bills and will this year see their rises “capped at 49% plus inflation”. This is on top of 42% increases (plus inflation) in 2017/18 and 32% (plus inflation) in 2018/19 – a combined increase in two years of a staggering 124% plus inflation.
John Webber, Head of Business Rates at Colliers International said, “The London hotel industry is facing increased pressure at the moment from escalating costs and business rates rises are not helping, particularly at a time when the sector is competing with on-line providers such as Airbnb, who do not pay business rates.”