UK hotels took more revenue per room in August 2026 than a year earlier but kept less of it as profit, according to the latest RSM UK Hotels Tracker. The monthly data set is compiled and produced by Hotstats and analysed by the audit and advisory firm RSM UK. Trade titles reported the figures on 30 September and RSM’s own page carries a date of 2 October.

The August numbers

Across the UK, occupancy rose from 82.3% in August 2025 to 82.8% in August 2026. Average daily rate (ADR) of occupied rooms increased from £152.80 to £156.38, and revenue per available room (RevPAR) moved from £125.79 to £129.48. By THD’s calculation that is ADR growth of about 2.3% and RevPAR growth of about 2.9%.

London occupancy was flat at 84.4%. RSM notes that the capital has recorded the same August occupancy for three years running, up from 80% in August 2023. London ADR rose from £210.44 to £214.90 and RevPAR from £177.62 to £181.38, an increase of roughly 2.1% on each measure by THD’s calculation.

Profit went the other way. Gross operating profit as a share of revenue fell from 37.2% to 36.3% across the UK, and from 39.4% to 37.5% in London. The London decline of 1.9 percentage points is about twice the national one.

Events lifted demand, costs took the gain

Chris Tate, partner and head of hotels at RSM UK, linked the month’s demand to good weather, domestic holidays and large concerts, naming the Bruno Mars and Harry Styles shows.

Mr Tate said greater cost pressures mean margins are shrinking even with strong occupancy and room rates, and that there is a limit to how far the industry can raise rates to manage higher costs. He said the Government’s tourist tax would add to those pressures, leaving hoteliers to choose between passing the cost on to guests, which risks stifling demand, or absorbing it.

Thomas Pugh, chief economist at RSM UK, said the outlook for the second half of the year has worsened with the recent rise in energy prices. He expects inflation to reach around 4.5% early next year, with real household income growth stagnating or turning negative, which he said would weigh on discretionary spending such as hotel stays.

Scotland is the exception

Scottish figures from the same tracker, reported by The Scotsman on 8 October, show a different margin picture. Occupancy in Scotland was 87.7% in August, slightly below 87.9% a year earlier. ADR rose from £203.35 to £212.58 and RevPAR from £178.69 to £186.34. Gross operating profit improved from 50.5% to 51.5%, against the fall recorded for the UK as a whole.

Katie Morrison, partner and head of consumer markets at RSM UK in Scotland, cautioned that there is a limit to what visitors will pay for a room before rising costs begin to hold back demand.

Not disclosed: the tracker release gives no breakdown of which cost lines drove the margin decline, and no figures for regional England, Wales or Northern Ireland. It does not state the size of the hotel sample. RSM’s commentary on the tourist tax gives no rate, start date or estimate of the cost per room.

THD’s reading

  • THD analysis, for owners: a 2.9% RevPAR gain that still produces a 0.9 point fall in gross operating profit margin means costs grew faster than revenue. Budgets for 2027 that assume rate growth alone will restore margin look optimistic on this evidence.
  • THD analysis, for operators: London has held 84.4% August occupancy for three years. With volume capped, the margin gap has to be closed through cost per occupied room and non-room revenue, not more heads in beds.
  • THD analysis, for revenue managers: Scotland shows that rate growth of about 4.5% can still convert to margin at high occupancy. Event-led pricing discipline matters more than chasing the last point of occupancy.
  • THD analysis, for suppliers: energy and labour efficiency products have a clearer pitch when headline trading is strong and profit is falling. Expect procurement teams to ask for payback periods, not features.