London, UK – In a presentation to the UK House of Lords hosted by Baroness Ros Altmann, Magnuson Hotels CEO Thomas Magnuson highlighted the rapid decline in the number of UK hotels owned by independent private companies.
Magnuson states that in 2010 UK independent hoteliers accounted for 78% of the UK hospitality industry. He reports that publicly listed branded hotels combined with the powers of globalism have reduced the share of natives to 50% by 2022. Magnuson adds that at the current exchange rate the share of independent hoteliers in the UK will fall to 22% by 2026.
In Magnuson’s presentation to the Travel Technology Initiative Organisation, Magnuson states that although the UK hospitality industry is the second biggest job creator in the UK and contributes over £100 billion a year to the British economy, we forget that 72% of British hotels have 50 rooms or less.
“Not all hotels are Savoys” said Magnuson. “Most hotels in the UK are small, family-run. And endangered.
Citing Newquay as an example, Magnuson reported that in the last ten years alone 40% of independent hotels in Newquay have closed. He adds that the power and scale of publicly traded global brands, platforms and marketing budgets are difficult to compete with.
Magnuson says Airbnb, founded in 2008, already accounts for listings equivalent to 88% of the total supply of hotel rooms in the UK. By 2026, it is estimated that Airbnb’s supply will exceed the total inventory of hotel rooms in the UK.
Magnuson reports that the UK hospitality industry has yet to recognize Airbnb rooms as part of the industry. Hotel owners across the country argue that because Airbnb Rooms are not nationally registered as businesses, they are invisible competitors and these operators are not subject to the same regulations and costs as the rest. of the UK hospitality industry.
Magnuson’s presentation recommended ways to start leveling the playing field for all UK hotel operators:
- A nationwide business registration process to include all hotels in the UK; chains, UK independent hotels as well as Airbnb listings. With a better understanding of all UK hotel operators, more thought can be given to planning that will benefit everyone.
- Designation of protected status for independent UK hotel entities that are private or non-public and based in the UK.
- A national area impact study requirement for all proposed new hotels, as occupancy in the UK has already risen from 70% to 60% in the provinces.
About Magnuson Hotels
Founded in 2003 as the world’s first independent hotel chain, today hotel owners can affiliate with Magnuson as an independent brand or as a franchise. With a footprint that includes North America and Europe, the company stays true to the original philosophy; provide comprehensive personalized support and customized technology for hotel owners to succeed in their local markets without typical corporate franchise fees or requirements.
For more information: https://magnusonhotelsworldwide.com/.
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