MANCHESTER — Risks are multiplying, and they are arriving due to volatility, uncertainty, and a fractured operations and transactions environment.
Attendees at the 2026 edition of the Annual Hotel Conference spoke of their concerns — microeconomic ones such as the drop in hotel-industry vacancies, and macroeconomic ones such as fiscal drag and the continuation of conflict in Ukraine and the Middle East.
James Bland, commercial director, travel, hospitality and leisure at market research and public-opinion consulting firm Ipsos, called this new landscape a “polycrisis,” and wondered whether it is much different from the collection of worries the country faced in the past.
Jack Meaning, United Kingdom chief economist at British bank Barclays, said confidence among consumers and business leaders is “muted,” while Bland added the populace of the land that gave the world Shakespeare, the Beatles and the Rolling Stones is the most grumpy, pessimistic and insecure it has been in some 50 years.
But while the country faces a budget meeting in late October that doesn't hold much promise for the hotel sector many say, hoteliers generally seem more optimistic and happy than most, thanks to mostly strong travel demand, as people continue to book trips and spend on travel experiences.
Opportunity exists in the U.K. hotel sector, but adding value to hotel real estate and the industry in general will come from managing risks, not just taking bets, speakers said.
Hoteliers have proved in the past that they are up to the challenge, despite, as Bland added, in his research and numbers, the “only time [Brits] have been optimistic was during the lockdown.”
Dimitris Manikis, president, Europe, Middle East and Asia, Wyndham Hotels & Resorts, set the context by saying, “I am not a Liverpool [Football Club] fan, but its motto is ‘You’ll never walk alone” … and that is it. We are all in this together. That happened in COVID-19 when we shut our hotels and thought that was it, but we came back together.”
The U.K. industry is not back within those dark days, but the sheer weight of concerns and pressure require hoteliers to have as many friends as possible, speakers on the first day of the conference agreed.
Quotes of the Day
“The industry is struggling to underwrite deals because there is so much volatility in the market.” — Natalia Kolotneva, managing director, LaSalle Investment Management
“Our big bet is not on [revenue per available room]. It is on efficiencies and market complexities.” — Ritesh Agarwal, founder and group CEO, Prism, formerly Oravel Stays and the parent company of Oyo Hotels & Resorts
“The gap between those hotels that provide value and those that don’t has been widening, and that process started with Marriott acquiring Starwood.” — Cody Bradshaw, group CEO, hotels, London + Regional