Propel 500 report – ‘value judgements key to 2026 success’: As prices rise faster than general inflation, consumers will be increasingly focused on value this year, reports Mark Bentley, business development director at HDI. Bentley was writing in Propel 500 – 2026, the sector-leading report covering the top 500 hospitality companies in the UK. The consequence of higher pricing, Bentley said, was that consumers would be “less forgiving if what they receive does not justify what they pay”. He added: “The businesses that succeed will be those that combine a clear proposition, disciplined pricing, a deep understanding of their customers and local markets, and brilliant execution.” The 45,000-word report includes exclusive analysis to provide a full understanding of the market's dynamics, as the top companies in the sector shift position after a challenging year. Mark Wingett reviews the mergers and acquisitions changing the shape of the Top 500 as size increasingly matters, while Katherine Doggrell examines the key developments in UK hotels and look into one of the sector’s brightest lights; experiential leisure. Tim Street dissects the UK’s rapidly developing franchise market. while Meaningful Vision founder Maria Vanifatova analyses the latest trends in the quick service restaurant market. Propel 500 – 2026 is now available free to Premium Club subscribers. The report will be available to non-Premium Club subscribers for £595 plus VAT. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Whitbread now expecting impact of business rates changes to be lower at £35m, making ‘good progress’ on strategic plan: Whitbread has said it now expects the impact of business rates changes on the group to be lower than expected – at circa £35m rather than the initial £40m-£50m estimated – and is making “good progress” on its “accelerating growth plan”. The company stated: “Further to our previous statement that outlined our preliminary estimates regarding the impact of the changes announced as part of the recent UK Budget, while there has been no change to our underlying inflation assumptions, we now expect: Gross UK cost inflation to be between 6.5% and 7.5% on our £1.7bn UK cost base; this includes the changes to business rates that will result in an impact of circa £35m (versus our preliminary estimate of £40m-£50m); and net UK cost inflation to be between 3% and 4%, after accelerated efficiencies of £60m. In the UK, our high quality and great value guest proposition means we remain confident in our ability to deliver a healthy revpar premium versus the market and in Germany, with our increasing maturity and commercial initiatives, we are confident that we can continue to outperform the market. As previously announced, in response to the recent UK Budget, we are exploring a variety of options in order to further drive profits, margins and returns and will provide an update to the market regarding our five-year plan at the time of our FY26 preliminary results on 30 April 2026.” It comes as the group said food and beverage sales performed “in line with expectations”, in the third quarter, reflecting the impact of the accelerating growth plan to transform some of its “lower returning branded restaurants into higher returning hotel extensions”. Whitbread said: “We are making great progress with circa 90% of planning applications submitted, circa 65% planning applications approved and have completed or are on-site at circa 35% of sites.” The company said its UK food and beverage sales over its third quarter were down 1% on a like-for-like basis, and 1% year to date, “which was expected given the accelerating growth plan”. Whitbread said in the UK, the overall market continued its return to growth and it delivered a positive revpar performance. Whitbread reported total accommodation sales in the third quarter across its UK Premier Inn estate were up 2% on a like-for-like basis and flat in the year to date. The company said Premier Inn “continued to outperform the midscale and economy sector” with a revpar premium of £6.59. Total group sales were up 2% to £781m. In the six weeks to 8 January 2026, total UK accommodation sales and revpar were up 4% and total Germany accommodation sales were up 11%, with total Germany estate revpar up 5% to €56. Chief executive Dominic Paul said: “We delivered a strong performance in the third quarter, with positive momentum across the business. We remain highly disciplined regarding our strategic actions and by focusing on what we can control, we have continued to make great progress against our key initiatives and will deliver a higher level of efficiencies in FY26 than previously expected. In the UK, the overall market continued its return to growth and we delivered a positive revpar performance, which has continued and stepped up in the current trading period. The structural shift in supply, together with our brand strength and commercial programme, means we are confident in our ability to maintain a healthy revpar premium versus the market. We continue to believe the proposed changes to business rates are damaging for the overall sector and will impact future investment and job creation and we, along with the wider hospitality industry, continue to press the UK government for changes. Our vertically integrated model means we are well-positioned to adapt to shifts in the trading and fiscal environment and can continue to deliver sustainable and long-term value for shareholders.”

RedCat Hospitality CEO joins calls for business rates rethink to cover all hospitality businesses: RedCat Hospitality chief executive Richard Lewis, has called for any review of the business rates crisis by government to cover all hospitality businesses including accommodation venues, such as pubs with rooms and hotels. Speaking on behalf of RedCat – Britain’s fourth largest pubs-with-rooms business with close to 1,500 letting rooms across 40-plus locations – the calls from Lewis echo similar pleas from other hotel operators, such as Hilton, as well as similar campaigning from café and restaurant operators. RedCat’s rooms operation includes the award-winning Coaching Inn Group, which operates premium pubs-with-rooms venues in market towns and rural locations, and which typically generate 60% of their sales from food and drink. Reports in recent days suggest the government is set to review business rates amid an outcry from hospitality over the scale of the latest planned hikes, which were originally announced in the November Budget. However, fears abound that any subsequent intervention by the government will not go far enough, and may only deliver support to pubs – leaving other types of hospitality businesses struggling to absorb the swingeing increases. Lewis said: “There are two things that the broad hospitality industry – including businesses like ours – urgently require of the government. The first is to make good on the current government’s manifesto commitment to fundamentally reform what is an out-of-date rates system that unfairly taxes hospitality businesses. In the absence of meaningful reform in the here and now, the second thing the sector needs is immediate action to avert the latest proposed increases, which for many businesses are astonishing and nonsensical. Without this, the government risks overseeing a significant contraction of the sector, and stifling jobs, investment and growth.” Lewis said that it was important for ministers to evaluate rates in the context of other significant cost increases from recent Budgets, such as national insurance contributions and the rising levels of the minimum wage, which had a knock-on effect across pay scales, and were impacting the whole hospitality sector. Lewis added: “While pubs are a crucial part of hospitality and the fabric of our communities, and should receive help, it is critical that any intervention is delivered to the wider sector and includes accommodation businesses like pubs-with-rooms and hotels. These sites serve local communities with a place to meet and to socialise, and are an essential part of people’s lives. They act as a real hub for the community for local events, weddings, wakes, and meetings. It is important that we continue to make them viable and not burden them with ongoing and ever-ballooning tax and operational increases, so they are profitable and can ensure investment continues to keep these businesses well cared for and viable for years to come.” 

Gym Group set to accelerate growth with 75 new sites over next three years: Gym Group is set to accelerate growth with 75 new sites over the next three years as the group said it expects to deliver full year results slightly above the top end of current analysts’ forecasts. Revenue for the year ended 31 December 2025 increased 8% to £244.9m (2024: £226.3m) with like-for-like revenue growth of 3%. Average members grew 4% to 945,000 (2024: 906,000), and average revenue per member per month was up 4% to £21.60 (2024: £20.81). The group closed the year with 923,000 members compared with 891,000 at 31 December 2024, an increase of 4%. Gym Group opened 16 new sites in the year, taking the total to 260. The group said 40 gyms are now trading in the new, enhanced format and are “performing well”. Net debt as at 31 December 2025 was £59.3m, compared with £61.3m at 31 December 2024 and £5m below analyst consensus expectations. The group stated: “As a result of the strong delivery of like-for-like growth and new site performance, group adjusted Ebitda less normalised rent for FY25 is expected to be slightly above the top end of the current group-compiled analyst consensus range of £52.5-£54.9m We are taking this momentum into 2026 and expect that FY26 group adjusted Ebitda less normalised rent will also be slightly above the top end of the current group-compiled analyst consensus range of £55.2-£59.3m. The strong trading performance continues to provide confidence that the group’s business model and strategy is delivering. As a result, we are accelerating our new site openings programme to take full advantage of the available white space and market growth opportunity. Accordingly, we now expect to deliver circa 75 new sites over the next three years funded from free cashflow, with circa 20 new sites set to open in 2026, alongside the ongoing reinvestment programme in our existing estate and major technology platforms. Taking both the momentum and outlook for the group into account, the board has determined that there is surplus financing capacity and, in line with our capital allocation policy, intends to commence a share buyback programme of up to £10m in due course. The programme is expected to be completed by the end of 2026 and will allow for sustained purchasing over a number of months, with execution guided by a disciplined, strategic framework in order to maximise returns.” Chief executive Will Orr said: “This has been another year of strong progress for the group, and we now expect the FY25 outturn to be at the top end of our previous guidance. Our ‘Next Chapter’ growth strategy is delivering, and we see significant opportunities ahead in a market with structural growth tailwinds. As a result, we are accelerating our organically funded rollout to circa 75 new sites over the next three years. We entered the key new-year member recruitment period well prepared, and our high value, low cost offering, enabled by an advantaged business model, continues to resonate strongly with consumers. In addition, we are generating strong free cashflow that supports returning surplus capital to shareholders while maintaining the financial strength to invest in the group’s long term growth.”

Brighton Pier Group CEO – ‘we’ve had more than 40 expressions of interest in buying the pier’: Anne Ackord, chief executive of Brighton Pier Group, has said there have been more than 40 expressions of interest in buying the pier. She said there were a mix of local, national and international potential buyers. Ackord told the BBC most interested parties were “very keen” to continue using the pier in its current state and “certainly appreciate” its heritage. Brighton’s 126-year-old Palace Pier was put on the market for an undisclosed price this month. The move followed warnings of “difficult” trading for the pier in previous years – linked to declining tourism and poor summer weather. Ackord previously warned that costs had also risen overall by about 50%. She said expressions of interest in the grade II*-listed pier would continue to be accepted for another couple of weeks. Brighton Palace Pier opened in May 1899 after three years of construction. Brighton Pier Group bought the structure in 2016 for £18m. In its 2024 company accounts, the business booked impairments on the value of Brighton Palace Pier, giving a net book value for the “pier, landing stage and deck” of £13.7m. An admission fee of £1 for non-residents was introduced in 2024, which was doubled to £2 in March last year. Last week, Brighton Pier Group sold Lightwater Valley Family Adventure Park in Ripon, North Yorkshire, to The Mellors Group, which created The Cube experience in partnership with Objective Media Group, for an undisclosed sum. Brighton Pier Group, which delisted from the London stock market last year, is actively exploring opportunities for the potential sale of some or all of its remaining assets.