Business rates for pubs, restaurants and hotels
Hospitality is one of the few sectors where the standard valuation method genuinely doesn't apply across the board — and knowing which method applies to your property is the first thing worth getting right.
Two different valuation methods, one sector
- Restaurants, cafés and takeaways are generally valued the same way as retail units — using rental comparison and zoning against similar local premises. The same issues that affect retail rateable values (stale comparables, incorrect zoning, out-of-date floor areas) apply here too — see our retail rates guide for detail on how that method can go wrong.
- Pubs, hotels and other trade-related properties are typically valued using Fair Maintainable Trade (FMT) — the annual level of trade the VOA judges the property could reasonably achieve if run efficiently, rather than a comparable rent. FMT takes into account trading history, the physical characteristics of the property, services offered (food, gaming, sports broadcast, accommodation), and applies a percentage adjustment reflecting operating style, costs and profitability.
Why FMT valuations need a different kind of scrutiny
Because FMT is trade-based rather than rent-based, the evidence that matters in a Challenge is different too: actual trading accounts, an honest assessment of what “fair” and “reasonably efficient” mean for a property like yours, and whether the VOA's assumptions about food/wet sales split, accommodation revenue, or trading potential actually reflect how the property trades in practice. A valuation built on an overly optimistic view of achievable trade is one of the most common reasons a pub or hotel's rateable value doesn't match reality.
What the 2026 revaluation changed for hospitality
The 2026 list reflects trade and rental levels that had generally recovered and, in many cases, grown since the 2023 valuation date — but recovery hasn't been even across the sector, and a rateable value based on sector-wide trends can overstate the position for an individual venue that hasn't recovered at the same pace. The government's support package also includes targeted, additional relief for eligible retail, hospitality and leisure properties under £500,000 rateable value — see our 2026 revaluation guide for the full detail on that support and the deadlines around it.
How we help hospitality businesses
We identify which valuation method actually applies to your property, check the assumptions behind it (trade evidence for pubs and hotels, comparable evidence and zoning for restaurants and cafés), confirm you're getting the relief you're entitled to, and run the full Check, Challenge, Appeal process where there's a case to be made.