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UK Hotel Rate Outlook 2026 | arrangeMY Insight
UK Hotel Rate Outlook 2026 | arrangeMY Insight
Following several years of volatility driven by pandemic recovery, demand surges, and inflationary pressures, the UK hotel market is entering a period of stabilisation. The latest industry forecasts, supported by arrangeMY’s booking insight, indicate that hotel rate growth is moderating, creating improved predictability for organisations managing accommodation spend.
This represents a positive shift for corporate travel, workforce accommodation, training programmes, and project-based travel across the UK.
Hotel rate growth moderates as market stabilises
Industry forecasts indicate modest average daily rate (ADR) growth across both London and UK regional markets in 2026:
- London ADR is forecast to increase by approximately 0.3%
- UK regional ADR is forecast to increase by approximately 0.7%
This reflects a more balanced supply-and-demand environment following the stronger increases seen during the post-pandemic recovery period.
Overall, the market is expected to enter a period of measured progress, signalling increased stability and more predictable pricing conditions.
Demand remains resilient across corporate and project travel sectors
Despite economic uncertainty, hotel demand continues to be supported by several key drivers, including:
- Corporate travel and business activity
- Infrastructure and project-based workforce travel
- Events, conferences, and training programmes
- Domestic and international travel recovery
This sustained demand continues to underpin hotel occupancy and support stable operating conditions across the sector.
Limited supply growth supporting pricing stability
Hotel supply growth remains relatively constrained across much of the UK, particularly in regional markets. Supply expansion continues to be influenced by construction challenges, financing conditions, and planning constraints, helping to maintain pricing stability.
While new supply is entering some major cities, overall supply levels remain balanced relative to demand.
arrangeMY insight: stabilisation reflected across corporate accommodation programmes
Analysis of arrangeMY’s accommodation booking data across our UK corporate client portfolio aligns closely with wider industry trends, showing a clear shift towards more stable and predictable pricing.
We are seeing:
- Greater rate consistency across key corporate locations
- Improved negotiation outcomes with hotel partners
- Increased opportunities to secure competitive negotiated rates
- Reduced volatility compared to previous years
This reflects a transition towards a more balanced market environment, where structured accommodation programmes provide improved cost control and stability.
Organisations with proactive accommodation strategies and preferred supplier programmes are particularly well positioned to benefit from current market conditions.
What this means for organisations managing accommodation spend
The stabilising hotel market presents valuable opportunities for organisations to strengthen cost control and programme performance.
Key benefits include:
- Improved forecasting accuracy and budget planning
- Greater ability to secure competitive negotiated rates
- Increased programme stability and reduced exposure to volatility
- Stronger supplier engagement and partnership opportunities
Structured accommodation programmes, supported by specialist providers such as arrangeMY, play a critical role in delivering these outcomes.
arrangeMY supporting clients through changing market conditions
At arrangeMY, we continuously monitor hotel market trends using a combination of industry benchmarking, supplier engagement, and booking data analysis.
This enables us to:
- Secure competitive, market-aligned accommodation rates
- Provide strategic programme guidance and market insight
- Support clients with cost control and supplier optimisation
- Deliver measurable value across corporate accommodation programmes
As market conditions stabilise, organisations that take a strategic, data-driven approach to accommodation management will achieve the strongest long-term outcomes.
Outlook for 2026: stability creates opportunity
The UK hotel market outlook for 2026 is characterised by stabilisation, modest growth, and improving predictability.
While rate increases are expected to continue, they are forecast to remain moderate, creating favourable conditions for organisations to optimise accommodation programmes and secure long-term value.
arrangeMY remains committed to supporting clients through proactive sourcing, strategic programme management, and expert market insight.
Speak to arrangeMY for tailored market insight
Every organisation’s accommodation profile is different, influenced by location, volume, booking behaviour, and programme structure. arrangeMY continuously analyses both market benchmarks and our own booking data to provide clients with accurate, tailored guidance.
To understand how current market conditions may impact your organisation, please contact your arrangeMY Account Manager for personalised insight, benchmarking, and recommendations to optimise your accommodation programme, or email account.management@arrangeMY.com