Authors

Richard Bursby

Partner

Read More

Elisabeth Heide

Senior associate

Read More

Jack Wain

Associate

Read More
Authors

Richard Bursby

Partner

Read More

Elisabeth Heide

Senior associate

Read More

Jack Wain

Associate

Read More

17 September 2020

Hospitality in the News - 17 September 2020

  • QUICK READ

TW:thinkingdifferently

In our first newsletter after the summer (like no other) holiday period, we thought we would take a look at what happened whilst we were away.

In the UK, the "Eat Out to Help Out" scheme appears to have been incredibly successful for the hospitality sector. According to OpenTable, restaurant reservations were 53% higher compared with the Monday-to-Wednesday period in August 2019 and Barclaycard Payments said diners spent 34.2% more at restaurants during the subsidised days than in July. However, there were reports of a drop off in trade on the days when the scheme didn't apply. Given 1 in 4 licensed premises in the UK are still not trading, there are calls for the scheme to be repeated in the winter months.

The "small print" in legal Terms & Conditions has become the "big print" with the High Court finally ruling on the proceedings the UK's Financial Conduct Authority commenced against multiple insurers in respect of COVID-19 and Business Interruption insurance claims. Overall the High Court agreed with the FCA on most points, though many policyholders will likely still be left disappointed at their lack of cover.

COVID has turned hospitality businesses on their head – hotels in prime central locations in European gateway cities have really struggled whilst those in rural and coastal locations, and smaller urban locations, have done much better. In fact, the staycation boom has meant some UK hospitality businesses have had a really strong summer.

In potentially more positive news, last week there was discussion in the House of Commons around a long term cut to VAT for hospitality and hotels beyond the already announced cut to 5% until January 2021. This would certainly get our vote to stimulate the tourism economy and level the VAT field with a number of European destinations so as many tourism businesses as possible survive the winter months. Watch this space.

Do you know?

The oldest hotel in London is Brown's Hotel in Mayfair which dates back to 1837.

Articles

FCA Business Interruption Insurance test case a success for hospitality industry
(Hospitality and Catering News)

Sushisamba to open at W Edinburgh hotel
(The Caterer)

How AI is making foodservice efficient
(Hotel News Resource)

Sandals launches virtual wedding service
(Breaking Travel News)

58% of Manhattan rooms are still closed
(Hotel Business)

'Eurostar For Business' platform unveiled for business travel
(Travel Daily Media)

The Fairmont hotel brand has opened in Australia for the first time
(Travel Daily Media)

Call To Action Arrow Image

Latest insights in your inbox

Subscribe to newsletters on topics relevant to you.

Subscribe
Subscribe

Related Insights

Sun lounger with blue background
Hotels & leisure

Hospitality in the News - 1 October 2020

1 October 2020

by multiple authors

Click here to find out more
staircase
Hotels & leisure

Hospitality in the News - 23 July 2020

23 July 2020

by multiple authors

Click here to find out more
hotel pool
Hotels & leisure

Hospitality in the News - 09 July 2020

9 July 2020

by multiple authors

Click here to find out more