BWH Hotels GB CEO Tim Rumney speaks on plight of hospitality

Tim Rumney, CEO of BWH Hotels GB, says more than four-fifths of the 230 hotels in the chain are already cutting staff hours to cope with rising costs.

Mr Rumney called it encouraging inflation had dropped to 2.8 per cent in February but said the Chancellor’s Spring Statement “does little to ease the pressures on independent hoteliers.”

He said: “The reality is, with the UK economy shrinking by 0.1 per cent in January and interest rates stuck at 4.5 per cent, many hotels will have no choice but to stop recruiting, cancel investments and hike prices.

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“Not an obvious formula to reach the Chancellors reduced growth targets - and the last thing hoteliers want to do.

Mr Rumney explained: “While the proposed increase in household disposable income may offer some hope, the ongoing freeze on income tax thresholds negates this.

“As wage increases push more into higher tax brackets without a real boost in spending power, limiting disposable income for travel.

“This results in guests booking last minute, which is making forecasting harder than ever.”

Within his partner hotels, the percentage of bookers reserving within a day of arrival had jumped ten per cent, and by six per cent for those in under seven days, giving hoteliers less confidence in forecasts and being unable to plan.

Mr Rumney continued: “While no immediate tax rises may provide short-term stability, spending cuts could further hit consumer confidence and spending.

“April 1st will also bring higher employer costs, with National Insurance hikes and wage increases further squeezing hotel payrolls. The new Employment Rights Bill also brings the prospect of higher costs and more red-tape, making job creation less attractive.

“A recent survey of more than 230 of our BWH hoteliers revealed 83 per cent are already cutting staff hours to cope with rising costs.

“Despite calls for VAT reductions, business reform and NICs exemptions for lower-band taxpayers from more than 70 per cent of our hoteliers, the pressure continues to mount. Without real support, our industry is left to face these challenges by ourselves.”

Mr Rumney called on hoteliers to partner with BWH to maintain their independence, whilst still receiving support.

He added: “With the government tightening its grip on spending, hotels must adapt fast. While the Spring Statement won’t provide the help many hoped for, with the right support, independent hoteliers can still find ways to succeed.”