A report produced by hospitality insurer NFU Mutual and the British Hospitality Association has painted a cautiously optimistic picture for the future of the hotel industry, with 81% of hotel businesses sampled expecting to maintain or increase investment levels to mid-2020.

The Hotel Confidence Report reveals the views of over 2,000 general consumers and 141 businesses in the hotel, hotel supply and hospitality industries.

Particular areas of focus for hotel investment to 2020 include property refurbishment and expansion (69%); technology (53%) including customer data for marketing and personalisation, mobile solutions and superfast broadband; marketing (53%) and staff training (47%).

The top concerns of hoteliers include a skills shortage (40%), the political and economic effect of Brexit negotiations (38%), costs and margins (25%) and increasing levels of competition in the marketplace (20%).

Darren Seward, hospitality sector specialist at NFU Mutual, said: “Many businesses are showing clear concern about a skills shortage as a result of Brexit negotiations and calls for guaranteed protection of EU workers came through loud and clear in our report. Despite these challenges our research shows that the picture within the hotel industry is striking a more positive note; an optimism shared by consumers.”