Hoteliers could claim thousands on overpaid business rates

By Sophie Witts contact

- Last updated on GMT

Hotels have until 31 March to appeal their Business Rates
Hotels have until 31 March to appeal their Business Rates

Related tags: Hotel

Hotel operators could claim up to £145,000 per hotel on overpaid business rates if they appeal before the 31 March deadline, Colliers International has reported.

Colliers analysed the number of hotel assessments in each region along with the total rateable value (RV), and found potential savings of between £18,796 and £145,881.

London hotels could be entitled to the largest rebates, up to £145,000, due to an abundance of larger and higher value properties in the capital.

Properties in the West Midlands could be entitled to an average rebate of £43,897, ahead of the South East, which could expect average savings of £40,291.

John Webber, head of rating at Colliers International, said: “We want to draw hoteliers’ attention to the fact that if any new competition opens up in their locality, it gives them a legitimate reason to appeal their rating assessment. This is known as a material change in circumstance (MCC Appeal), and can result in a significant reduction in the rateable value.

"As the shutters are coming down at the end of March 2015, we urge hoteliers to take immediate action and find out whether they are eligible to claim thousands if not hundreds of thousands of pounds due to them."

Businesses have just four weeks to appeal their business rates, before the 31 March deadline.

Webber said: “This deadline has not been greatly publicised, and even our clients with experience in rating are unaware of this appeals window. Our concern is that the new deadline will cause panic, with the cowboys in the industry persuading clients to appeal en-masse without appropriate due diligence, which could result in an increase in rates liability, ironically, also dating back for five years.”

Average savings per region based on Colliers 12.5 per cent reduction:

London - £145,881.96

West Midlands - £43,897.73

South East - £40,291.15

North West - £39,371.57

East - £35,609.85

North East - £34,651.80

Yorkshire & The Humber - £32,083.40

East Midlands - £30,632.74

South West - £19,838.53

Wales - £18,796.27

Related topics: Business, Hotels, Trends & Reports

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