Regional independent hotels outpace hotel market revenue decline
The latest analysis by Rangewell, a specialist hospitality financing intermediary with expertise in regional hotel sector funding, has revealed that while the UK hotel sector faces another revenue dip in 2025, regional independent operators with deep local market knowledge are bucking the trend and significantly outperforming the broader market statistics.
Despite the overall UK hotel sector showing signs of strain, with total market revenue dipping -2.4% in 2024 and further contraction expected in 2025, hotel lending data compiled by Rangewell shows that a new breed of agile independent hoteliers is thriving through superior local intelligence and nimble operational strategies.
Independent Success Story Emerges from Market Challenges
According to Rangewell’s hotel financing specialists, independent hotels with strong local market knowledge are delivering higher RevPAR and profit margins than their chain competitors.
These locally-rooted operators are leveraging guerrilla techniques in revenue management, distribution and marketing strategies to drive exceptional financial results that defy the sector’s broader struggles.
Unlike major chains constrained by standardised approaches, independent operators are capitalising on the growing consumer demand for unique and personalised experiences.
They’re implementing dynamic pricing strategies, forging authentic community partnerships, and offering immersive cultural experiences that larger brands simply cannot replicate at scale.
Market Context: Sector-Wide Pressures Continue
Rangewell’s analysis of UK hotel market trends reveals that the broader market remains below its 2019/20 peak despite clear revival in occupancy levels and domestic tourism.
Following the pandemic’s devastating -52% market contraction in 2021, the sector experienced strong recovery with growth of +45.1% in 2022 and +37.1% in 2023, before the current downturn began.
While inflationary pressures, rising operational costs, and tighter margins continue to weigh heavily on chain operators, hotel finance experts at Rangewell note that independent hotels are proving more resilient. Their intimate business knowledge and superior awareness of local market dynamics allows them to absorb low booking periods with greater ease, without the pressure and targets that typically burden chain properties.
Finance Solutions Driving Recovery
Rangewell, which specialises in hospitality sector lending solutions, believes that the right financial support could help hotel operators and investors not only weather the current downturn, but reposition themselves for future growth. The specialist business finance intermediary is currently supporting hoteliers with tailored funding solutions ranging from commercial mortgages and development finance to short-term bridging and cashflow lending.
In recent months, hospitality lending specialists at Rangewell have seen a significant uptick in applications for refurbishment and repositioning finance, as hotel owners seek to upgrade outdated stock and appeal to evolving traveller expectations around wellness, sustainability and flexible working spaces.
Independent and boutique operators are particularly turning to alternative finance solutions to manage tax liabilities and smooth seasonal cashflow, while experienced investors continue seeking opportunities to capitalise on lower valuations and favourable lending terms.
Alasdair McPherson, commercial property expert at Rangewell, commented: “While headline revenue per formance 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.”
With hundreds of lenders across the UK now re-engaging with the hotel sector, and investor appetite rebuilding, hotel sector finance specialists at Rangewell believe that access to the right finance can help restore momentum, particularly for independent operators who understand how to leverage local market advantages.