Unoccupied hotel rooms across the UK are costing the hospitality sector more than £820,000 a week – with London, Edinburgh and Oxford seeing the highest missed earnings.
In an industry already struggling with tight margins, staff shortages, and rising energy costs, every unfilled room represents a missed opportunity for recovery.
A new study analysed occupancy trends in 36 hotels across 36 cities, such as the occupancy rate and the percentage of empty rooms, to determine the total revenue made and lost in 2024.
The statistics reveal that a combination of savvy pricing models, local tourism campaigns, and short-stay discounts is vital for stabilising occupancy rates during less busy times.
To ensure a fair analysis, GuestReady researchers selected a mix of boutique and mid-scale hotels hotels with an average of 107 rooms to compare weekend and weekday room rates.
They then calculated the total costs, including those for both occupied and unoccupied rooms.
The study revealed that a single empty room, on average, costs cities between £22 and £53 per night in lost revenue.
London has the highest rate of empty hotel rooms among ten major UK cities, losing an estimated £39,604 in potential weekly revenue because 18 per cent of its rooms remained unoccupied.
Unoccupied hotel rooms across the UK are costing more than £820,000 a week – with London , Edinburgh and Oxford seeing the highest missed earnings (stock image)
This was followed by Edinburgh, which is experiencing a weekly loss of £35,555, with a 24 percent hotel room vacancy rate.
Taking the third spot is Oxford, with a 24 per cent empty room rate having resulted in £31,218 of lost revenue per week.
But other than signalling loss, the figures showcase just how much room there is for growth – including the strategic use of pricing, marketing, and guest experience that can help hoteliers transform unfilled capacity into consistent, long-term gains.
With targeted strategies, even a 5 per cent increase in occupancy could produce tens of millions of pounds in additional annual revenue for the nation’s hospitality sector.
Among four key strategies to help hoteliers turn potential into profit is the use of dynamic pricing, which involves using real-time data to adjust rates and fill gaps during low-demand periods.
Another is local marketing, which targets domestic travellers through short-break campaigns and off-season offers.
Five-star service offered to guests at every touchpoint is a third core strategy, which includes personalised welcomes, small surprise upgrades, and thoughtful gestures.
Finally, embedding local culture and attractions into the guest journey is another useful approach.
In an industry already struggling with tight margins, staff shortages, and rising energy costs, every unfilled room represents a missed opportunity for recovery (stock image)
London (pictured) has the highest rate of empty hotel rooms among ten major UK cities, losing an estimated £39,604 in potential weekly revenue because 18 per cent of its rooms remained unoccupied
This can be anything from partnering with nearby restaurants and artisans to joining forces with tour guides to offer exclusive experiences – such as private tastings and guided walks.
Using Booking.com listings, GuestReady’s analysis also highlights the importance of understanding local hotel density, showing how market saturation influences the potential for success in different cities.
Standing out with the highest concentration, with 48 places to stay per square mile, is Manchester, reflecting strong demand and a vibrant hospitality scene.
Meanwhile, emerging markets like Bradford, Milton Keynes, and Swansea, have relatively low density, suggesting that well-positioned new hotels could capture market share quickly with limited direct competition.
Seasonal and domestic travel also matters, with cities dependent on tourism, such as Edinburgh and York, or student populations in Cambridge and Manchester, requiring careful attention to booking patterns throughout the year.
The data shows that demand-driven pricing continues to thrive, with cities like London, Glasgow and Edinburgh seeing dramatic rate surges during key months such as December and August.
By leveraging event and holiday-led tourism, such as Christmas, summer festivals and Wimbledon, hoteliers can maximise success by marketing premium packages and early-bird promotions.
While Edinburgh benefits from events such as the Edinburgh Fringe Festival, which sees midweek rates surge by up to 220 per cent, London leads on festive demand, with December weekend rates reaching £376, compared with £156 in January.
This was followed by Edinburgh (pictured), which experiencing a weekly loss of £35,555, with a 24 percent hotel room vacancy rate
Taking the third spot is Oxford (pictured), with a 24 per cent empty room rate having resulted in £31,218 of lost revenue per week
It comes after the UK’s best and worst hotel chains were revealed in a Which? study.
The hotel arm of cheap and cheerful pub giant J D Wetherspoon came fifth, charging £70 a night on average at its 55 hotels, and receiving four stars for value for money, customer service, bed comfort, cleanliness and a number of other categories.
One guest commented that the hotel was ‘clean, comfortable and good value’.
The top spot in the annual poll went to Coaching Inn.
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