Whitbread warns that a rise in property taxes linked to the budget might cost millions of dollars

Published Date: 5 December 2025

Whitbread warns that a rise in property taxes linked to the budget might cost millions of dollars first image

Whitbread, the company that owns the Premier Inn hotel chain, has warned that changes to business rates bills for valuable commercial properties will cost it an extra £40 million to £50 million in the next fiscal year. This will make things even harder for a sector that is already having trouble with rising costs.

The company says that the increase is because the government has recently revalued commercial real estate, which has caused hotel prices to go up a lot in areas with a lot of business. Whitbread runs about 850 Premier Inn hotels in the UK, and many of them are affected by the higher taxes.

According to executives, the increase comes at a bad time for the hospitality industry, which is still dealing with stubborn food and energy inflation, ongoing labor shortages, and wage increases that are meant to attract and keep workers. Even though consumer spending is slowing down, these pressures have made operating costs go up.

Whitbread warns that a rise in property taxes linked to the budget might cost millions of dollars second image

Whitbread said that even though hotel occupancy has been good, the company still has to deal with the effects of rising fixed costs at a time when many customers are becoming more price-conscious. It warned that if business rates keep going up, they could hurt future investments, especially in regional projects and renovations meant to increase room capacity and energy efficiency.

The group said it would keep talking to lawmakers and trade groups about making long-term changes to the business rates system. Many businesses say it is outdated and unfairly burdens property-heavy industries like retail and hospitality.

Analysts said Whitbread’s warning underlines the difficulties still facing the UK hospitality sector as it continues to rebuild after the pandemic. Rising supplier costs, higher borrowing rates and persistent recruitment challenges have created a far more volatile trading environment, raising concerns that additional tax pressures could deter future investment in the industry.

Whitbread has indicated that the increase in business rates will form a significant part of its financial outlook for 2025–26. The company is expected to set out further details of its cost-saving measures when it updates investors later in the year.