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Hoteliers in Bristol are “cautiously optimistic” that trading conditions will improve in 2026, despite ongoing financial pressures and concerns about rising costs in the first quarter of the year.
Adam Flint, chair of the Bristol Hoteliers Association (BHA), stated that performance at the end of 2025 was stable overall, with mixed results across the city.
He said hotels outside the city centre reported stronger Christmas party business in November and December than those in central Bristol.
He also reported that the final quarter of 2025 had been generally strong for the sector, but warned that the start of the year remained a traditionally difficult period.
He said: “After a generally strong Q4 for the industry, while the start of a new year is traditionally slower at first, we are hoping for some good traction again as people return to visit Bristol for work and leisure.”
Additionally he noted that the first quarter often brings uncertainty around meetings and events, as companies reassess budgets ahead of the end of the tax year, and that rising employment costs, including an increase to the living wage due in April, were expected to add further pressure on hotel operators and their corporate clients.
Flint said: “It is usually the time when many companies can tighten their purse strings ahead of the end of the tax year, and also brace themselves for changes, such as increases to the living wage which will be introduced in April.”
Despite the challenges, he said several major events scheduled for early 2026 were expected to support demand.
These include the Bristol Light Festival in February, as well as the Six Nations rugby championship in Cardiff, which has previously generated additional hotel bookings in Bristol.
Cheltenham Festival week was also expected to drive demand for hotel rooms in the city, he said, as has been the case in previous years.
He concluded: “So overall, there is cause for cautious optimism, but we can’t afford to be complacent, as things like the wage increases will undoubtedly have an impact.
“Bristol has a huge amount to offer, for the corporate clients and tourists, and with a wide range of special events happening all year round, we are trying to be positive, knowing there are still many challenges facing us, but we do still hope 2026 will be a happy new year for Bristol’s hotels.”
