Claridge’s, the five-star Mayfair hotel, has reported a loss after tax of £9.7m for 2025, a significant shift from the £2m profit recorded in the previous year. The luxury London establishment stated that the loss was “predominantly driven by the inflationary change in payroll and related costs.”
The hotel also highlighted its exposure to future government policy changes, specifically mentioning “the adverse impact of the increase in employer National Insurance contributions and consecutive increases in minimum living wages.” While revenue for the year reached £137.8m, remaining broadly in line with the previous year, the cost of wages and employer taxes increased by over £1m.
Claridge’s has reportedly faced further challenges in 2026, including a decline in visitors from the Middle East due to the war in Iran. The hotel also identified rising inflation, interest rates, energy costs, and supply chain constraints linked to ongoing conflicts as significant financial risks.
The hotel's ownership is set to devolve to the heirs of Hamad bin Khalifa Al Thani, the former Emir of Qatar, following his death in July. Claridge's, which opened in 1898 and expanded in 2021, was ranked 16th on a list of the world's 50 best hotels, the highest UK entry.