Budget hotel group Travelodge has saved more than £3m in business rates by challenging the valuation of many of its properties ahead of a deadline for appeals.
The group of more than 500 hotels has been advised by property agent Colliers International, which has analysed hotels that should appeal their business rates liability before the end of next month.
All hotels that have had competitor properties open nearby now have only a few weeks left to benefit from thousands of pounds worth of savings in business rates.
Appeals can currently be made by hotels on business rates paid since April 2011. However, as the result of the Chancellor's decision to limit business rate savings, appeals will only be able to be made back to April 2015, after 1 April 2016.
Colliers International has highlighted that an average 50-bedroom hotel in central London impacted by a competitor opening could anticipate a cash saving of around £120,000, if an appeal is made going back to 2011.
John Webber, head of rating at Colliers International, said: "The clock's ticking for hotels to look at their business rates payments and to explore whether these can be reduced.
"Over the last 18 months, through detailed competitor analysis, we have secured in excess of £3m cash savings for Travelodge's 500-hotel portfolio with more appeals still in the system. We are standing by to help other hotel operators before time runs out.
"Business rates is a significant cost to hotel operators. Let me be clear: savings for business rates could improve the financial position of some hotels to such a degree that it saves them from going out of business with the associated job losses.
"Cash is the lifeblood of any business, particularly for hotels. Our data demonstrates that viability can be improved significantly by acting now."
The current level of business rates, primarily based on property valuations prior to the recession, was introduced in 2011. A new rateable value list, which will be published in October 2016, will come into play next year.
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