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Analysis

Higher labour costs squeeze UK hotel profit margins

Payroll costs account for a higher share of turnover in regional UK properties
CoStar Analytics
March 21, 2025 | 7:00 AM

Over the past five years, labour costs for hotels across the UK have increased by approximately 34%, according to STR/CoStar data. During the same time, total revenues grew by around 26%, underlining the challenges facing the hotel industry.

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