Hospitality Sector Index

The Moore Kingston Smith monthly Hospitality Sector Index (HSI) provides you with a valuable and timely indication of the month-on-month changes occurring within the sector.

The July 2025 Index: 102.1

An index above 100 indicates improved productivity compared with the previous month; below 100 shows a decline.

Our analysis

Based on June data, the July Hospitality Sector Index (HSI) is a positive index of 102.1 showing the sector continues to work hard to increase productivity in response to growing employment costs.

Key findings

• Relative to May, the like-for-like revenues in June increased by 4.48%. There would be a seasonal uplift expected at this time of year which would improve like-for-like revenues, but is notable that the fine dining sector continues to be outperforming other parts of the sector.
• The hotel sector has only enjoyed a 2.12% increase in revenues relative to May.
• There was only a modest 2.31% increase in hours worked despite the extra seasonal demand, illustrating the continuing caution hospitality businesses are exercising in respect of managing employment costs, notably in pubs and bars where the hours worked actually decreased by 0.46% relative to the prior month.

Peter Davies, Partner and Head of Troncmaster Services at Moore Kingston Smith, said:

“The wonderful weather has helped tremendously and provided a much-needed seasonal boost which has enabled the sector to benefit from revenue increases and therefore continue to improve productivity.

Revenues across fine dining have remained encouraging but the hotel sector improvement is notably modest relative to the rest of the sector – probably a consequence of increased price sensitivity dampening demand and lower levels of international travel which is affecting London in particular. A 2.12% increase in hotel revenue was offset with a 3.12% increase in hours worked, showing a decline in productivity within that category suggesting a lower guest spend per head.

Pubs and Bars particularly benefited from the warm and dry weather seeing a 3.84% increase in revenues in the month, delivered with fewer worked hours suggesting it was a combination of higher spend per head or inflationary price increases that drove the month-on-month revenue improvement.

As we move into the high summer period with key events in July such as Wimbledon and high-profile pop concerts in major cities, it will be fascinating to see if there is a noticeable improvement in the sector next month.”

How we can help

For more information about the Hospitality Sector Index, TroncBox or our solutions to the hospitality sector, please contact one of the team.

How we collect the data

The Moore Kingston Smith Hospitality Sector Index compares changes in revenues and hours worked relative to the prior month. The data for the Index is gathered by WMT Troncmaster Services Limited, part of Moore Kingston Smith, which manages tronc allocations for circa 315 hospitality businesses operating across nearly 900 sites. The data is extracted from our proprietary software, TroncBox, used for the majority of these tronc allocations.

The index offers a broad indication of productivity changes on a month-by-month basis, where an index above 100 indicates improved productivity and below 100 indicates a decline.

The use of tronc allocation information provides a valid data source following the introduction of the Employment (Allocation of Tips) Act on 1 October 2024, which requires 100% of service charge (and tips) to be distributed among all employees without deductions no later than the end of the month following its receipt. Typically, restaurants, pubs and bars distribute tips and service charge at the end of the same month the gratuity is received, however given the nature of the business and the regular use of agency workers, it is commonplace for hotels to make these distributions to workers in arrears which means there is an inherent lag in the hotel sector data.

Published monthly, each Hospitality Sector Index will build on earlier editions to track performance over time, with year-on-year analysis available from October 2025. Click here to read previous editions.