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Sectors

Hotels and Guesthouses

Driving operational excellence for hotels and guesthouses

The UK hotel sector has become much more advanced, with profits increasingly shaped by smarter pricing based on quality data and tighter control of costs. However, whether you are operating a luxury boutique hotel or a large-scale commercial establishment, the dual pressures of rising overheads and the complexities of digital distribution require a partner who understands the intricacies of hospitality finance.

At Armstrong Watson, we speak the language of hoteliers. We focus on the metrics that define success—RevPAR, GOPPAR, and total guest spend—providing the technical oversight and financial planning necessary to enhance asset value. We provide the professional clarity you need to navigate the financial complexities of 2026 with total confidence.

Key contact

Matthew Hutton, Business Services Director

Matthew Hutton

Business Services Director

Contact Matthew

Common questions & practical concerns

Expert financial insights to help hoteliers navigate complex tax reliefs, manage VAT compliance on bookings, and transition to more sophisticated profitability metrics.

Hotel buildings contain substantial 'integral features' like air conditioning, lifts, and electrical systems that qualify for significant tax relief. If these weren't fully claimed by previous owners or during a refurb, we can often identify these 'embedded' allowances, generating substantial non-cash deductions that can drastically reduce your Corporation Tax or Income Tax bills. 

The VAT treatment of retained deposits has become more stringent. Generally, VAT is due at the point of payment rather than the stay. If a guest fails to arrive, the retained deposit remains subject to VAT. We ensure your booking and accounting systems are configured to handle these 'tax points' correctly, mitigating the risk of underpayment. 

Hotels are high-risk targets due to the volume of credit card and personal data they process. We provide Cyber Security Solutions tailored to the sector, ensuring your booking platforms and guest Wi-Fi are secure. This includes achieving PCI DSS compliance and implementing robust data protection policies to safeguard your reputation and avoid heavy GDPR fines. 

While Revenue Per Available Room (RevPAR) is a standard benchmark, it doesn't account for rising labour and energy costs. We help you transition to tracking GOPPAR (Gross Operating Profit Per Available Room). This more sophisticated metric provides a clearer picture of your hotel’s true underlying profitability after all departmental and undistributed operating expenses are deducted. 

Relying solely on the eventual sale of the hotel is a high-risk strategy. Our Financial Planning team works with you to utilise tax-efficient profit extraction methods, such as director pension contributions or ISA wrappers. This allows you to build a diversified personal wealth portfolio outside the business, ensuring financial security regardless of future market conditions for hospitality property. 

Recent news stories

Business planning

9th April 2026

Company year-end planning: Capital allowances, pension contributions and dividend rates

13th August 2025

Does a tourist tax help or hurt local tourism?

17th May 2025

Changes to business rates and targeted retail, hospitality and leisure support

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Latest news

Business planning

Company year-end planning: Capital allowances, pension contributions and dividend rates

by Helen Robinson - 9th April 2026

Does a tourist tax help or hurt local tourism?

by Matthew Hutton - 13th August 2025

Changes to business rates and targeted retail, hospitality and leisure support

by Adam Pattison - 17th May 2025

Six tips for a successful business expansion in 2025

by Matthew Hutton - 10th December 2024

Reminder of holiday pay reforms for employers operating January to December annual leave

by Armstrong Watson - 5th December 2024