Business rates for hotels and guest houses (2026/27)
Hotels and guest houses pay business rates using the lower hospitality multipliers in England for 2026/27 where eligible; GOV.UK lists hotels among its examples. Hotels are usually valued with reference to trade, not floor area, so our free comparison can’t check a hotel’s value.
Which multiplier applies
GOV.UK lists hotels and guest houses among the businesses that can use the lower retail, hospitality and leisure multipliers (38.2p under £51,000, 43p from £51,000 to £499,999). Your council confirms eligibility.
| Rateable value (England, 2026/27) | Standard | Retail, hospitality and leisure |
|---|---|---|
| Under £51,000 | 43.2p | 38.2p |
| £51,000 to £499,999 | 48p | 43p |
| £500,000 or more | 50.8p | 50.8p |
How hotels and guest houses are valued
Hotels are generally valued from the trade they could be expected to achieve. That needs specialist judgement; a RICS-regulated surveyor is the right route if you think yours is wrong.
Reliefs to ask about
- Small business rate relief: nothing to pay in England if it’s your business’s only property and the rateable value is £12,000 or less; tapering to £15,000.
- Supporting small business relief if you lost relief at the 2026 revaluation, and transitional relief if your bill is rising because of it.
- Holiday lets and self-catering accommodation follow separate rules on whether they pay business rates or council tax. See GOV.UK: self-catering and holiday lets. Our checker doesn’t cover them.
Our free comparison doesn’t cover hotels and guest houses, because they aren’t valued on floor area. You can still estimate the bill with the calculator.
Estimate your bill with the 2026/27 business rates calculator, or read how to challenge a valuation.
Questions
Do guest houses pay business rates?
Usually, if they are run as a business and meet the rules for non-domestic property. Small guest houses may qualify for small business rate relief. Check with your council and the Valuation Office.
- GOV.UK: Estimate your business rates
- GOV.UK: Business rates relief
- GOV.UK: How non-domestic property is valued
- Business Wales: Multipliers 2026-27
Checked against GOV.UK and Business Wales on 13 October 2026. Rules change; if anything differs, GOV.UK and your council are right. Rightly Rated is not affiliated with or endorsed by the Valuation Office, HMRC or any council.
Rightly Rated is a self-serve evidence tool, not a rating surveyor or adviser. Figures come from the Valuation Office’s published 2026 rating list and from what you tell us. We do not act for you with the Valuation Office, and a challenge can lower, keep or raise a rateable value.