Magnuson CEO at UK House of Lords: Protect endangered UK independent hotels to preserve British hospitality industry

23rd June, 2022 – London UK

In a presentation at the UK House of Lords hosted by Baroness Ros Altmann, Magnuson Hotels CEO Thomas Magnuson outlined the rapid decline in the number of UK hotels owned by independent private businesses.

Magnuson states that in 2010, UK independent hoteliers represented 78% of the UK hotel industry. He reports that publicly traded branded hotels combined with globalism powers have reduced the native share to 50% in 2022. Magnuson adds that at today’s change rate, the UK independent hotelier share
will fall to 22% by 2026.

UK Hotel Industry

In Magnuson’s presentation to the Travel Technology Initiative Organisation, Magnuson says that even though the UK hospitality industry is the second largest job creator in the UK and contributes over £100 Billion per year to the UK economy, it is overlooked that 72% of UK hotels have 50 rooms or less.

“Not all hotels are the Savoy,” Magnuson said. “Most hotels in the UK are small, family owned. And endangered.”

Citing Newquay as an example, Magnuson reported that in just the last ten years, 40% of Newquay independent hotels have closed. He adds that the power and scale of publicly traded global brands, with platforms and marketing budgets are hard to compete with.

Magnuson states that Airbnb, founded in 2008, already represents listings equalling 88% of the total UK hotel room supply. By 2026, it is estimated that Airbnb supply will be  14% greater than the total UK hotel room inventory.

Magnuson’s presentation recommended ways to begin levelling the playing field for all UK hotel operators:

  • A nationwide business registration process to include all UK hotels; chains, UK independent hotels as well as Airbnb listings. With a better understanding of all UK hotel operators, more thought can be given toward planning that will benefit all.
  • Designation of protected status for those UK independent hotel entities that are privately held or non-public, and UK business based.
  • A national requirement of area impact studies for all proposed new hotels, as UK occupancy has already fallen from high 70% to low 60% in the provinces.

Magnuson reports that the UK hotel industry has yet to recognise Airbnb rooms as part of the industry. Hotel owners across the country maintain that because Airbnb rooms are not nationally registered as businesses, they are invisible competitors, and that these operators are not subject to the same regulations and costs as the rest of the UK hotel industry.

Airbnb UK Growth

About Magnuson Hotels:

Founded in 2003 as the world’s first independent hotel chain, today hotel owners can affiliate with Magnuson as an independent or a franchised brand. With a footprint that includes North America and Europe, the company remains true to the original ethos; providing comprehensive personalized support and customized technology for hotel owners to succeed in their local markets without typical corporate franchise expense or requirements.

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