Christie Insurance explores complex landscape in Hotel Market Review 2025
In 2025, the UK hotel sector faces a complex insurance landscape. While overall insurance rates have slightly declined, rising operational costs, including labour, materials, and transport are driving up repair expenses and extending business interruption periods. These pressures are contributing to an increase in property and income-related claims.
Christie Insurance
Insuring your business, your interests and your family
The UK hotel sector continues to face a complex insurance landscape in 2025. While overall insurance rates have seen a modest decline, hotels remain under pressure from rising operational costs. Labour shortages, increased wage demands, and higher material and transport expenses are driving up the cost of repairs and extending business interruption periods. These factors are contributing to elevated claims activity.
Claims and Cost Pressures
Claims for property damage and loss of income are increasing. Environmental risks, particularly surface water flooding caused by more frequent heavy rainfall and aging drainage systems, are a growing concern. Insurers are responding by reassessing flood risk models and pricing strategies, which often result in higher premiums for properties located in high-risk areas.
Cybersecurity: A Growing Threat
Cyber risk is now a top priority for hoteliers. With widespread reliance on digital booking platforms, payment systems, and guest data, hotels are increasingly vulnerable to cyber-attacks. Although cyber insurance premiums have decreased in 2025, many businesses still seek cover only after experiencing a breach. Christie Insurance strongly encourages a proactive approach, shifting from a mindset of “if” to “when” a cyber incident may occur.
Property Risks and the Importance of Accurate Cover
Hotels, especially those in urban areas or with historic features, face heightened property risks. A recent high-profile fire at the Chiltern Firehouse in central London served as a reminder of the importance of robust property insurance. The incident highlighted the need for accurate reinstatement cost assessments, particularly for heritage properties with complex restoration requirements.
Without adequate cover, businesses risk being underinsured, which can severely delay or limit recovery. The temporary closure of such a prominent venue also had a ripple effect on surrounding businesses, demonstrating the broader value of business interruption insurance. This type of cover is essential not only for the affected property but also for neighbouring businesses that may suffer from reduced footfall and lost revenue.
To discuss insurance for your business, get in touch:
David Foster
Account Executive – New Business
Christie Insurance
E: David.Foster@christieinsurance.com
M: +44 7561 114 969