Skip to main content

Hotel & Hospitality Capital Allowances

Hotels, restaurants, pubs, and bars contain extensive embedded assets - commercial kitchens, HVAC systems, guest bathrooms, and specialist installations. Most hospitality operators miss significant tax relief.

Get Free Assessment Contact Us
25-45%
Of Property Value Claimable
£185,000
Average Hospitality Claim
10-12
Weeks to Completion

The Embedded Assets Opportunity in Hospitality Properties

Think about what makes your hospitality business work. It's not just the furniture and decor - it's the infrastructure behind every guest experience. The commercial kitchen that serves hundreds of meals daily. The HVAC system that keeps guests comfortable. The bar infrastructure that enables service. The fire safety systems that protect everyone. These aren't just operational necessities - they're embedded assets worth claiming.

The hospitality advantage:

Hospitality properties are uniquely asset-rich because every guest-facing area requires extensive infrastructure. A hotel might have 50+ en-suite bathrooms, each with embedded plumbing and electrical installations. A restaurant needs commercial kitchen infrastructure worth tens of thousands. A pub requires bar installations, cellar cooling, and service infrastructure. Multiply this across every room, every service area, and you're looking at substantial embedded value.

What most hospitality operators miss:

Your accountant likely claims capital allowances on moveable items - tables, chairs, beds, TVs, kitchen equipment. But they're missing the embedded infrastructure - the extraction systems, gas installations, HVAC infrastructure, electrical systems, and fire safety installations that are permanently attached to the building. These embedded assets typically represent 25-45% of your property's value, often amounting to £100,000-£500,000+ in unclaimed tax relief.

The retrospective opportunity:

If you've owned your hospitality property for years without claiming embedded assets, you can likely claim retrospectively. That means recovering tax relief you've been missing - potentially going back multiple years and unlocking significant cash flow.

What Qualifies in Hospitality Properties?

Commercial Kitchens

£50,000 - £150,000
Extraction and ventilation systems
Gas and electrical installations
Refrigeration infrastructure
Drainage and grease management
Fire suppression systems
Water treatment

Guest Bathrooms

£4,000 - £8,000 per room
En-suite installations
Sanitary ware and fixtures
Electrical and plumbing
Extract ventilation
Tiling and waterproofing

HVAC Systems

£40,000 - £120,000
Air conditioning throughout
Heating systems
Ventilation and extraction
BMS controls
Cooling systems

Bar & Restaurant Installations

£20,000 - £60,000
Bar installations and cellar cooling
Coffee machine plumbing
Display refrigeration
POS and networking infrastructure
Lighting systems

Fire & Safety

£20,000 - £80,000
Fire detection systems
Sprinkler installations
Emergency lighting
Kitchen fire suppression
Smoke extraction

Guest Facilities

£30,000 - £100,000+
Lifts and accessibility
Gym equipment infrastructure
Pool and spa systems
Laundry facilities
Conference AV infrastructure

Why Hospitality Properties Are Asset-Rich

Unlike standard commercial properties, hotels and restaurants require:

Commercial kitchen infrastructure

Extraction systems, gas installations, refrigeration infrastructure, and specialist equipment that standard properties never need.

Multiple guest bathrooms

En-suite installations in every room, premium fixtures, and high-spec installations that justify premium rates.

Guest comfort systems

HVAC systems, underfloor heating, smart controls, and climate management essential for guest satisfaction and reviews.

Specialist hospitality systems

Bar installations, pool and spa systems, laundry facilities, and guest service infrastructure beyond standard buildings.

Enhanced safety systems

Comprehensive fire detection, sprinklers, emergency lighting, and security systems required for guest safety and insurance.

Premium electrical infrastructure

Enhanced power distribution, data cabling, AV systems, and smart room controls that differentiate hospitality properties.

All of these hospitality-specific installations contain embedded assets that most accountants overlook.

The Embedded Assets Your Accountant Misses

Your accountant likely claims capital allowances on:

  • Moveable furniture and fixtures
  • Kitchen equipment (freestanding)
  • IT equipment and POS systems
  • Linens and soft furnishings

But they're probably missing:

  • Commercial kitchen extraction systems (£40,000-£120,000)
  • Guest bathroom installations (£4,000-£8,000 per room)
  • HVAC and climate control systems (£50,000-£150,000)
  • Bar and service installations (£20,000-£60,000)
  • Fire safety and sprinkler systems (£30,000-£80,000)
  • Electrical infrastructure and distribution (£25,000-£75,000)

These embedded assets typically represent 25-45% of your hospitality property's value.

Case Study

Case Study: 25-Room Boutique Hotel

25-room boutique hotel with restaurant and bar

Purchase Price
£2,200,000
Embedded Assets
£638,000
Tax Relief Secured
£121,220

Key Embedded Assets Identified

Commercial kitchen extraction and ventilation system (£68,000)
En-suite bathroom installations (25 rooms) (£228,000)
HVAC and climate control systems (£130,000)
Bar installations and service infrastructure (£58,000)
Fire safety and sprinkler systems (£79,000)
Electrical infrastructure and distribution (£75,000)

Hospitality & Hotels Capital Allowances FAQ

How much can a hotel claim in capital allowances?
Hotels typically claim £100,000-£500,000+ depending on size and specification. Each guest room with en-suite bathroom contributes £4,000-£8,000, commercial kitchens can be worth £40,000-£120,000, and HVAC systems often £50,000-£150,000+. A 50-room hotel might claim £300,000+ in total.
What about restaurants and pubs - how much can they claim?
Restaurants and pubs are highly asset-rich due to commercial kitchens, bar installations, and customer facilities. Quality establishments typically claim £50,000-£150,000. Commercial kitchen extraction systems alone can be worth £40,000-£80,000, with bar installations, HVAC, and customer facilities adding significant additional value.
Can we claim on recent refurbishment or renovation work?
Absolutely! Refurbishment work creating new embedded assets is claimable. This includes kitchen upgrades, bathroom renovations, HVAC improvements, bar refits, and electrical upgrades. Recent refurbishments often represent the highest-value claims as they include modern, high-spec installations.
Do en-suite bathrooms in hotel rooms qualify?
Yes! Each en-suite bathroom installation including sanitary ware, plumbing, electrical, tiling, and extraction typically qualifies for £4,000-£8,000 per room. In a 25-room hotel, this alone can represent £100,000-£200,000 in embedded assets.
What about commercial kitchen extraction systems?
Commercial kitchen extraction and ventilation systems are among the highest-value embedded assets in hospitality properties. These can be worth £40,000-£120,000+ depending on size and specification. Many accountants miss these as they're integrated into the building structure.
Do bar installations and service areas qualify?
Yes! Bar installations including plumbing, electrical, refrigeration infrastructure, and service equipment installations all qualify. These are often worth £20,000-£60,000+ depending on the size and complexity of the bar area.
What if we've owned the property for years without claiming?
You can still claim retrospectively if you haven't previously claimed embedded assets. For properties purchased before 2012, there's no time limit. For post-2012 purchases, there's generally a 2-year window, but exceptions exist. We'll assess your specific situation.
How do you value hospitality embedded assets?
Our specialist surveyors (including RICS Chartered professionals when required) use HMRC-approved valuation methodologies, assessing each embedded asset's contribution to the property value. This includes detailed inspection of kitchens, bathrooms, HVAC systems, electrical infrastructure, and all building services to ensure maximum claim value.
Will the survey disrupt our guests or operations?
No. Our surveyors work around your operational schedule. For hotels, we can survey during quieter periods or between guest stays. For restaurants and pubs, we work around service hours. We understand the importance of minimising disruption to your business.
What's included in hospitality property embedded assets?
Key embedded assets include commercial kitchen infrastructure, en-suite bathroom installations, HVAC and climate control systems, bar installations, fire safety systems, electrical infrastructure, lifts, and specialist hospitality equipment installations. These are fixtures permanently attached to the building, not moveable equipment.