Business Rates Guide

Business Rates for Hotels & Guest Houses

Hotel business rates are based on complex fair maintainable trade calculations. Many properties are overvalued — check yours for free.

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Common Issues for Hotels & Guest Houses

These are the most frequent problems we find when checking business rates for hotels & guest houses.

1

Hotel valuations often rely on fair maintainable trade (FMT) estimates that may not reflect current occupancy and revenue

2

RHL Relief provides significant discounts for hospitality businesses, but councils do not always apply it correctly

3

Seasonal and boutique hotels often have valuations that do not account for trading patterns

4

The 2026 revaluation reassesses every hotel — if your trade has declined, your rateable value should reflect that

Reliefs That May Apply to Your Hotel

We check every available relief as part of your property assessment. These are the most common for hotels & guest houses.

restaurant

Retail, Hospitality & Leisure Relief

40% (2025-26)

40% relief for retail, hospitality, and leisure businesses in 2025-26.

store

Small Business Rate Relief

Up to 100%

Up to 100% off your rates bill if you occupy a single property with a rateable value under £15,000.

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Supporting Small Business Relief

Cap on increase

Caps your bill increase at £800 per year if you're losing your Small Business Rate Relief.

Example Savings

A typical hotel with a rateable value of £45,000.

Current Bill

£22,455

/year

Potential Saving

£5,800

26% per year

Optimised Bill

£16,655

/year

Example for illustration only. Actual savings depend on individual property circumstances, location, and applicable reliefs.

How We Help Hotels & Guest Houses

1
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Check

We compare your hotel's rateable value against VOA data for similar properties and check for RHL Relief, Small Business Rate Relief.

2
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Challenge

If we find you're overcharged, we write to your council for relief claims and submit a formal Check and Challenge to the VOA on your behalf.

3
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Protect

Year-round monitoring, compliance handling, and annual reviews. You keep 100% of your savings.

One plan, one price

£99/year

Check, challenge, monitoring, compliance. No percentage fees.

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Check Your Hotel's Rates in 60 Seconds

Free, instant check. No email required. See your savings potential and find out if you are overpaying.

Hotels & Guest Houses: Frequently Asked Questions

How are hotel business rates calculated?expand_more
Hotels are typically valued using the Fair Maintainable Trade (FMT) method rather than a simple price-per-square-metre approach. The VOA estimates what a reasonably efficient operator would achieve in trade, then applies a percentage to derive the rateable value. If your actual trade is consistently below the FMT estimate, you may have grounds for a challenge.
Does RHL Relief apply to hotels?expand_more
Yes, hotels and guest houses generally qualify for Retail, Hospitality & Leisure Relief when it is available. This can provide a significant discount on your rates bill. Check with your local council or let us verify it has been applied to your property.
What if my hotel has had lower occupancy recently?expand_more
If your occupancy and revenue have fallen below what the VOA assumed when setting your rateable value, this could be grounds for a Check or Challenge. We compare your valuation against current market conditions and similar properties to identify if you are overvalued.
Can guest houses and B&Bs also save on business rates?expand_more
Yes. Guest houses, B&Bs, and serviced accommodation are all subject to business rates if they meet certain criteria. Many smaller properties qualify for Small Business Rate Relief, which can reduce your bill substantially or even to zero if your rateable value is below certain thresholds.