The UK hotel sector is facing another year of revenue decline in 2025, but independent operators with strong local knowledge are continuing to outperform, according to new analysis from Rangewell.
Rangewell reported that total market revenue dipped -2.4% in 2024, with a further contraction expected this year.
However, data from its hospitality finance division indicates that independent hoteliers are achieving stronger revenue per available room (RevPAR) and profit margins compared with their chain competitors.
The firm said these operators are leveraging local insight and agility to defy wider market trends.
They are adopting dynamic pricing, forging community partnerships, and offering cultural experiences that cannot easily be replicated by larger groups.
This approach, supported by tailored finance solutions, is enabling them to remain resilient in the face of sector-wide challenges such as rising costs and tighter margins.
Alasdair McPherson, commercial property expert at Rangewell, said: “While headline revenue performance may have stalled, the real story is how smart independent operators are thriving through superior local market knowledge and operational agility.
“These hoteliers understand their communities intimately and can pivot quickly to meet changing guest expectations.
“We’re seeing more lenders return to the market with competitive products aimed at hospitality, particularly when borrowers can demonstrate a strong management plan, realistic forecasts and a clear strategy for long-term improvement.
“Independent operators often present exactly these qualities. Whether it’s refinancing to release equity, funding a refurbishment, or acquiring a site with turnaround potential, specialist finance remains a vital tool in unlocking opportunities during a period of uncertainty, especially for those with the local expertise to make it count.”
Rangewell said it is seeing a rise in demand for refurbishment and repositioning finance as operators look to upgrade outdated stock and respond to demand for wellness, sustainability and flexible working.
Independent and boutique hotels in particular are using alternative finance to manage tax liabilities and seasonal cashflow, while investors are seeking opportunities to take advantage of lower valuations and improved lending terms.
