Trending
UK hotels are facing a difficult operating environment. Demand remains present, but rising costs, economic changes and energy market volatility are putting renewed pressure on margins.
Energy Consultancy of the Year, Advantage Utilities, understands the challenges facing hotel operators in the current market. From rising energy prices and hidden non-commodity costs to increasing pressure around carbon reporting and ESG, the consultancy supports hotels with practical solutions that help reduce costs, improve visibility and build more resilient energy strategies.
For many operators, the challenge is no longer only about occupancy. It is about whether revenue can keep pace with the cost of delivering the guest experience.
The pressure is clear across the sector. UKHospitality has warned that many hospitality businesses (64%) are expecting to cut backs as costs rise. It has also modelled that, without a wider business rates solution, around 1 in 7 hotels could be at risk.
Energy is one of the biggest pressure points. Hotels operate around the clock, with constant demand from heating, cooling, lighting, kitchens, laundry, spas, pools, lifts and event spaces. In this environment, energy has shifted to a core operating cost.
Geopolitical instability has added further uncertainty. Middle East tensions, LNG movements, oil price volatility and wider supply concerns continue to influence UK gas and power markets. Even where hotels are not directly exposed to global supply routes, prices can still move quickly because energy markets are highly connected.
That makes reactive procurement increasingly risky. Waiting until contract expiry, or focusing only on the lowest unit rate, can expose hotels to poor timing, hidden costs and unsuitable contract structures.
Advantage Utilities, named Consultancy of the Year for Large Customers at the 2025 TELCA Awards, supports leading hotel brands including The Peninsula, Mandarin Oriental and Grantley Hall with strategic energy management. Its work covers procurement, bill validation, carbon reporting, analytics, cost recovery and efficiency planning.
In one hotel portfolio, Advantage Utilities helped deliver more than £500,000 in savings within two years. In this hotel portfolio, the consultancy supported a wider energy and sustainability programme that achieved a reduction in grid electricity consumption of more than 25% and carbon savings of over 170 tonnes of CO₂e in the first year.
The key is balancing commercial savings with guest experience. Energy reduction cannot come at the cost of comfort, service or operational continuity. For hotels, the most effective strategies are data-led, carefully planned and tailored to how each property operates.
As the sector continues to navigate rising costs and higher expectations, energy remains one of the costs hotels can influence with the right support.
To explore how Advantage Utilities can support your hotel or hotel portfolio, visit www.advantageutilities.com or contact the team directly for a consultation.
SOURCES:
http://ukhospitality.org.uk/april-cost-increases-hospitality-jobs/
https://www.ukhospitality.org.uk/hospitality-closures-business-rates/
Advantage Utilities are award-winning commercial energy experts that help hotels cut costs & take control. With over 20+ years of experience in the industry, Advantage Utilities is the trusted partner for many well established hotels in the UK. Their personalised approach, industry-leading accreditations, and end-to-end support ensure hotels meet regulatory obligations and achieve significant cost savings.
UK hotels are facing a difficult operating environment. Demand remains present, but rising costs, economic changes and energy market volatility are putting renewed pressure on margins.
Energy Consultancy of the Year, Advantage Utilities, understands the challenges facing hotel operators in the current market. From rising energy prices and hidden non-commodity costs to increasing pressure around carbon reporting and ESG, the consultancy supports hotels with practical solutions that help reduce costs, improve visibility and build more resilient energy strategies.
For many operators, the challenge is no longer only about occupancy. It is about whether revenue can keep pace with the cost of delivering the guest experience.
The pressure is clear across the sector. UKHospitality has warned that many hospitality businesses (64%) are expecting to cut backs as costs rise. It has also modelled that, without a wider business rates solution, around 1 in 7 hotels could be at risk.
Energy is one of the biggest pressure points. Hotels operate around the clock, with constant demand from heating, cooling, lighting, kitchens, laundry, spas, pools, lifts and event spaces. In this environment, energy has shifted to a core operating cost.
Geopolitical instability has added further uncertainty. Middle East tensions, LNG movements, oil price volatility and wider supply concerns continue to influence UK gas and power markets. Even where hotels are not directly exposed to global supply routes, prices can still move quickly because energy markets are highly connected.
That makes reactive procurement increasingly risky. Waiting until contract expiry, or focusing only on the lowest unit rate, can expose hotels to poor timing, hidden costs and unsuitable contract structures.
Advantage Utilities, named Consultancy of the Year for Large Customers at the 2025 TELCA Awards, supports leading hotel brands including The Peninsula, Mandarin Oriental and Grantley Hall with strategic energy management. Its work covers procurement, bill validation, carbon reporting, analytics, cost recovery and efficiency planning.
In one hotel portfolio, Advantage Utilities helped deliver more than £500,000 in savings within two years. In this hotel portfolio, the consultancy supported a wider energy and sustainability programme that achieved a reduction in grid electricity consumption of more than 25% and carbon savings of over 170 tonnes of CO₂e in the first year.
The key is balancing commercial savings with guest experience. Energy reduction cannot come at the cost of comfort, service or operational continuity. For hotels, the most effective strategies are data-led, carefully planned and tailored to how each property operates.
As the sector continues to navigate rising costs and higher expectations, energy remains one of the costs hotels can influence with the right support.
To explore how Advantage Utilities can support your hotel or hotel portfolio, visit www.advantageutilities.com or contact the team directly for a consultation.
SOURCES:
http://ukhospitality.org.uk/april-cost-increases-hospitality-jobs/
https://www.ukhospitality.org.uk/hospitality-closures-business-rates/
Advantage Utilities are award-winning commercial energy experts that help hotels cut costs & take control. With over 20+ years of experience in the industry, Advantage Utilities is the trusted partner for many well established hotels in the UK. Their personalised approach, industry-leading accreditations, and end-to-end support ensure hotels meet regulatory obligations and achieve significant cost savings.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
Copyright BlazeThemes. 2023
