Top 100 hotel groups experience 13% profit boost after Brexit weakens pound
Profitability at the UK's top 100 hotel groups has risen 13% over the last year in accounts filed with Companies House before the end of September, analysis has revealed.
According to accountancy firm Moore Stephens, pre-tax profits also rose across the industry leaders to £689m, up from £609m in the previous year.
Business tax partner at Moore Stephens, Vincent Wood, believes the continued drop in sterling has benefitted the industry by making the country a top destination for overseas tourists.
Last year was a record-setting one for inbound tourism to the UK, with 39.2 million visits, a rise of 4.3% on the previous period.
Wood said: "2018 has already seen many big events that have helped to attract record numbers of tourists to the UK, including the Royal Wedding.
"Hotels are also being helped by a growing trend of more domestic breaks being taken in the UK and people choosing to go on ‘staycations'.
"Rising numbers of tourists are helping to reduce headwinds, but that won't last forever. The lower value of sterling has already proved to be a mixed blessing for some. It saw input costs, such as food, beverages and other imported goods like linen, soar."
