Business rates for hotels are based on the rateable value the Valuation Office assigns to your hotel, guest house or B&B, multiplied by a rates multiplier that changed on 1 April 2026. Hotels are named in the qualifying retail, hospitality and leisure (RHL) definition for England, so most hotels with a rateable value below £500,000 should now use one of the two lower RHL multipliers rather than the standard rate.
- Hotels and B&Bs qualify for the RHL multipliers where no significant nursing care is provided.
- 38.2p applies under £51,000 rateable value; 43p applies from £51,000 to £499,999.
- Hotel rateable values are commonly built on the receipts and expenditure method, so trade records matter.
- Appeal My Rates UK challenges hotel valuations through Check, Challenge, Appeal.
Why this matters
A hotel with a £400,000 rateable value pays £172,000 a year at the standard RHL multiplier of 43p against £192,000 at the standard 48p multiplier — a £20,000 difference. For a guest house with a £40,000 rateable value, the gap between the small RHL multiplier of 38.2p and the small business multiplier of 43.2p is £2,000 a year. Both differences repeat every year of the 2026 rating list, which runs to 31 March 2029.
The RHL definition covers hotels, boarding and guest houses and B&Bs, and it extends to self-catering accommodation, holiday homes and serviced apartments. Accommodation where a significant element of nursing or personal care is provided — care homes and nursing homes — is excluded. If your business mixes hotel floors with a care facility, the classification needs care before you assume the lower multiplier applies.
Check which of your properties qualify before challenging anything: the RHL multiplier, small business rate relief and transitional relief apply differently to every bill.
The 2026-27 multipliers for hotels
| Multiplier | Rate | Applies to |
|---|---|---|
| Small business RHL | 38.2p | Qualifying RHL premises with a rateable value under £51,000 |
| Standard RHL | 43p | Qualifying RHL premises with a rateable value from £51,000 to £499,999 |
| Small business (non-RHL) | 43.2p | All other premises with a rateable value under £51,000 |
| Standard (non-RHL) | 48p | All other premises with a rateable value from £51,000 to £499,999 |
| High value | 50.8p | All premises with a rateable value of £500,000 or more |
The RHL multipliers sit 5p below their national equivalents. They replaced the 40% retail, hospitality and leisure relief that ended on 31 March 2026, and unlike the old relief there is no cash cap — every qualifying hotel in a group benefits, not just the first property up to £110,000.
How hotel rateable values are built
Hotels are commonly valued on the receipts and expenditure method — the approach the VOA uses where the property's main purpose is to make a profit and there is little direct rent evidence. It works from fair maintainable trade: the trade a reasonably efficient operator could expect from the property, rather than one exceptional good or bad year. They may also be valued on bed space as part of the overall value, especially smaller sites so its always worth checking if those details reflect reality at the site.
That makes your trade records part of the valuation evidence. Room nights, food and drink receipts, events and occupancy all feed the figures the VOA works from. If the assessment was built on trade figures you dispute, that dispute is a valuation argument, not a billing complaint — and it needs your records to make it.
The new three-year rating list started on 1 April 2026, valued on rents as at 1 April 2024 (the antecedent valuation date). The values behind it were published on 26 November 2025, so your current rateable value has been public for nearly a year — long enough to check it properly before the bills bite.
Six checks for your hotel in 2026
1. Find your hotel on the 2026 rating list
Search GOV.UK's Find a Business Rates Valuation service by address or postcode, and note the rateable value, the description and the assessed extent.
- The description should reflect hotel or guest accommodation use, not an inherited office or retail description.
- The assessed extent should match the floors and buildings you occupy — flag anything included that you have vacated or never used.
- Compare the entry with your lease and floor plans before anything else.
2. Check the multiplier on your bill
A qualifying hotel shows 38.2p under a £51,000 rateable value or 43p from £51,000 to £499,999. A bill showing 48p or 43.2p on a qualifying hotel needs a written query to your council's business rates team, quoting your account reference and the government guidance on qualifying RHL properties.
3. Review the valuation scheme behind the value
Your Business Rates Valuation Account sets out the valuation scheme details for your property — the assumptions and comparable evidence the VOA worked from. Read it before forming a view on the value. A rateable value that looks high often rests on a specific assumption in the scheme notes, and that assumption is what a Check tests first.
4. Check your trade evidence supports the valuation
Where the receipts and expenditure method applies, the valuation is only as good as the trade figures behind it. Gather three years of accounts, occupancy records and food and drink takings, and compare them with the fair maintainable trade the valuation implies.
- If the valuation assumes trade your records do not support, that is the core of a Challenge.
- If the valuation assumes trade your records do support, the value may be sound — and an appeal would risk going nowhere.
5. Check every relief on the bill
| Route | Best for | What it does | Limitation |
|---|---|---|---|
| RHL multiplier | Qualifying hotels and guest houses | Lower multiplier applied automatically | The council must classify the property correctly |
| Small business rate relief | One property with a rateable value of £12,000 or less | Up to 100% off the bill | Tapers to zero between £12,001 and £15,000 |
| Transitional relief | Businesses facing large 2026 increases | Caps bill increases (5% small, 15% medium, 30% large for 2026-27) | Temporary — the cap unwinds across the list |
| Valuation challenge | An incorrect rateable value | Corrects the assessment itself | Needs evidence and Check, Challenge, Appeal deadlines |
The Supporting Small Business scheme also protects ratepayers who lost reliefs at the 2026 revaluation. If the RHL multiplier is wrongly missing, fix the classification first — it usually does more than any relief claim.
6. Raise a Check if the facts are wrong
England and Wales use the three-stage Check, Challenge, Appeal process for current rating lists. A Check corrects the property facts; a Challenge argues the value; an unresolved dispute goes to the Valuation Tribunal for England. Keep paying the bill as issued while the case runs — a challenge does not suspend collection.
Appeal My Rates UK runs hotel rates challenges across England, from the first Check through to tribunal where a case needs it.
Common mistakes hotels make
- Confusing hospitality with care. Hotels qualify; accommodation with a significant element of nursing care does not. Mixed-use sites need the classification checked part by part.
- Budgeting on the 2025-26 bill. The 40% RHL relief ended on 31 March 2026. The RHL multipliers are worth less than 40% for many premises, so the 2026-27 bill can rise even where you qualify.
- Ignoring the revaluation reset. Your 2026 rateable value is built on April 2024 rents — not a continuation of the old figure.
- Treating the revaluation increase as final. Transitional relief caps increases at 5%, 15% or 30% for 2026-27 depending on property size, and the Supporting Small Business scheme protects some businesses that lost reliefs.
- Skipping the Check stage. If the recorded facts are wrong, Check first. A Challenge built on uncorrected facts is weaker and slower.
Let us handle your case
A rating surveyor can review your hotel valuation, the RHL classification and every relief on the bill. Most of our work is no win, no fee, but some instructions carry fixed fees; the fee basis is confirmed in writing.
FAQ
Do hotels qualify for the lower RHL multiplier?
Yes. Government guidance names hotels, boarding and guest houses among qualifying RHL properties, provided no significant element of nursing care is provided.
Does a B&B qualify for the RHL multiplier?
Yes. B&Bs and guest houses fall within the same hospitality category as hotels, subject to the rateable value thresholds of under £51,000 or £51,000 to £499,999.
How is my hotel rateable value calculated?
Hotels are commonly valued on the receipts and expenditure method, working from fair maintainable trade. The 2026 list values every property on rents as at 1 April 2024.
Why did my bill go up even though I qualify for the RHL multiplier?
The 40% RHL relief ended on 31 March 2026 and the 2026 rating list reset every rateable value. Transitional relief caps increases at 5%, 15% or 30% depending on property size.
Does the RHL multiplier apply in Wales?
No. The RHL multipliers apply in England only. Wales sets its own multipliers and reliefs for 2026-27.
Do hotels get the extra 15% relief pubs receive?
No. The additional 15% relief for 2026-27 applies to pubs and live music venues. Hotels still benefit from the RHL multipliers and any other reliefs that apply.
Can I appeal my hotel rateable value myself?
Yes. Check, Challenge, Appeal is open to any ratepayer. Raise a Check first if the recorded facts are wrong, then Challenge the value with your trade records as evidence.
How does Appeal My Rates UK charge for hotel cases?
Most of our work is no win, no fee, but some instructions carry fixed fees. We confirm the fee basis, scope and payment terms for your instruction in writing.
One last thing
Hotels do not get the pub top-up. Pubs and live music venues receive an extra 15% relief in 2026-27 on top of the RHL multipliers, and their bills are frozen in real terms in 2027-28 and 2028-29. Hotels get neither — which makes getting the RHL classification and the valuation itself right the two levers that are actually available. See how pub and live music venue relief works by comparison.
Appeal My Rates UK is a firm of rating surveyors handling business rates appeals and council disputes across England. Ask for a review of your hotel valuation with the demand notice and rating-list entry to hand.
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- Best business rates consultants for hospitality venues
