Set Up a Hotel Business in the United Kingdom

How to Set Up a Hotel Business in the UK An easy read for budding hoteliers on how to set up a hotel business in the UK from 3E Accounting.

The global pandemic hit businesses across all sectors pretty hard, especially the tourism and hotel industry. However, with worldwide vaccine rollouts and digital health passports in the wings, this sector is seeing a slow but steady rebound. People refuse to be deprived of their holidays, and the wanderlust is here to stay, come what may. As normality resumes in stages, it is an opportune time to consider becoming a hotelier. Here’s what you need to know about how to set up a hotel business in the UK.


A Suitable Business

Pre-pandemic the UK had 40.9 million visitors in 2019, who spent GBP28.4 billion. While the pandemic brought business to a grinding halt, the industry is on-trend for growth within the next five years. The UK’s tourism industry itself is estimated to reach GBP257 billion by 2025.

Hotel business in the UK can range from luxury boutique hotels to budget B&Bs or Bed & Breakfast. The type of establishment will usually depend on location. Metropolitan London, for example, has a proliferation of high-end luxury hotels ranging from boutique to five-star hotels. Away from the city centres are more affordable options such as Bed & Breakfast, taverns, Airbnb, farm stays, etc. Hence, to start a hotel business, you will need to consider what type of establishment you wish to run. This includes:

  • Hotels: these include luxury, boutique, upscale, midscale or economy such as hostels.
  • Staycations: B&Bs, guesthouse, holiday cottages, caravans, flats, seaside resort, etc.

Consider whether your business will be providing accommodation only or other services such as restaurant, conference facilities, gym, etc. Once you’ve done your due diligence and written up a great business plan, you should look into company registration. Operating as a sole trader would work great for staycation type of establishments. Conversely, a luxury or boutique hotel might be more suitable for a limited company. Each type of entity has its pros and cons, and doing some research will enable you to make the right choice.

While there are no academic criteria to run a hotel business, there are many approvals to adhere to. Hotels are inspected annually and must meet certain industry standards. Hygiene and safety are top of the list, while location will dictate more specific approvals. You will need a licence to serve alcohol, play background music or have a television on the premises. Getting in touch with the local authority and the relevant Government departments is a great way to stay compliant.

Having explored details on how to set up a hotel business in the UK, it’s time to see the big picture. Savvy entrepreneurs will focus on the business itself while engaging professionals to get the legwork done. As a premier solutions firm, 3E Accounting provides bespoke services for all your business needs. Our team of professionals can take care of the A to Z of company formation details, from incorporation to approvals. We can even design your website and audit your accounts while we’re at it. Contact 3E Accounting today to learn about our full suite of customisable solutions.

How to Set Up a Hotel Business in the UK