Key facts
- Claridge's reported a loss after tax of £9.7 million for 2025.
- The hotel's revenue for 2025 was £137.8 million.
- Rising payroll costs and government tax policies were cited as primary drivers of the loss.
- Bookings from the Middle East to the UK have significantly declined.
- The hotel faces risks from inflation, interest rates, energy costs, and supply chain constraints.
Claridge’s, the renowned five-star London hotel, has reported a loss after tax of £9.7 million for the year 2025, a significant reversal from the £2 million profit recorded in the previous year. The hotel attributed this downturn primarily to increased payroll and related costs, directly linked to government fiscal policies such as higher employer National Insurance contributions and minimum wage increases.
Revenue for the year remained stable at £137.8 million, but the cost of wages and employer taxes rose by over £1 million. The hotel is also facing a challenging trading environment in 2026 due to a sharp decline in visitors from the Middle East, with bookings to the UK reportedly falling to half their normal rate following the outbreak of war in Iran. This trend has continued to strain high-end hotels reliant on international clientele.
Claridge’s identified several macro risks, including rising inflation, interest rates, energy costs, and supply chain constraints exacerbated by ongoing conflicts. The broader hotel industry is also concerned about proposed tourist levy powers that could increase the cost of staying in the UK. Ownership of Claridge's is undergoing transition following the death of Hamad bin Khalifa Al Thani, a significant stakeholder.
In a separate filing for the year ended December 31, 2024, Claridge’s reported a pre-tax loss of £5.4 million, despite a 14.7% increase in turnover to £136.9 million. This loss was attributed to increased interest payable and additional costs that revenue increases could only partially offset. Staff numbers rose to 832, with payroll increasing to £33.8 million.