£280 in February, £3,600 in March: Cheltenham Festival hotel prices soar

Sky-rocketing hotel prices during Cheltenham Festival week are up as much as 1,185 per cent from standard rates with a four-night stay costing at least £2,810 with leading hotel chains during jump racing's biggest event.

The chairman of the Horseracing Bettors Forum (HBF), a body representing the interests of punters, criticised hotels for taking advantage of the meeting's popularity and expressed concerns that prices may deter racegoers as the cost of living crisis continues.

The cost of a stay at the town's Holiday Inn and Hilton are respectively 743 and 589 per cent higher than a room in February over the same days between Tuesday and Saturday.

An en-suite double room at the Central Hotel, which has a 2.5 rating on TripAdvisor where the hotel is ranked 25th of 27 in the town, costs £280 between the dates of February 14 and 18 but comes in at £3,600 during the Cheltenham Festival.

Hilton, Holiday Inn and Central Hotel's parent group Roomsbooked were approached by the Racing Post but did not wish to comment.

Sean Trivass, chairman of the HBF, said: "It's a shame some hotels see fit to take advantage of punters when everybody's pound is already stretched to the limit. It's at a time that racing is looking for that leisure pound in among other sports, and elsewhere as much as ever.

"Hotels taking advantage can't be a good thing for the sport. However, we're aware we live in a free market economy and there's not a lot the HBF or the BHA can do.

"There will be some that save up for Cheltenham all year and won't bat an eyelid at the prices but there will be others who will baulk. Then the ones who have already got their tickets may well be stung, thinking they now can't afford it. Our concern is that people who look forward to Cheltenham may find it now beyond their budgets due to the hotel prices."

Edward Gillespie: 'I studied economics and that would show you that people will only charge what they can sell'Credit: Edward Whitaker

Edward Gillespie, director of Cheltenham racecourse for 32 years until 2012, argued "market forces" had driven the heightened prices.

He said: "I can't imagine anyone wanting to pay that, I can't understand it, but I studied economics and that would show you that people will only charge what they can sell. They won't end up having it empty.

"It's market forces and there's a certain premium on good locations. I very much remember the room rates being three times the price so it's definitely gone up."

Cheltenham's MP Alex Chalk believes increased demand, the cost of living crisis and growing energy bills were the factors behind the surging prices. This opinion is shared by members of TURF, a group of independent hospitality businesses from Cheltenham, who also stress prices must incorporate an insurance for potentially troublesome guests.

In March this year, a record attendance of 73,875 was recorded on Gold Cup day and while the maximum capacity is to be capped at 68,500 from 2023 to improve racegoer experience on course, the week still places enormous pressure on the town with a population of 118,000 according to the 2021 census.

Estimates suggest Cheltenham can host around 10,000 guests overnight and some racegoers instead bed at nearby Gloucester or Tewkesbury, or travel in from as far as Bristol and Birmingham.

Chalk said: "There has always been a premium on accommodation during the festival week, and I am conscious of the energy and cost of living pressures that TURF members will be facing.

"Direct comparisons with previous month's prices may be a little wide of the mark given it is usually a quiet month for the hospitality industry. Ultimately, pricing is a matter for independent businesses who will want to remain competitive when it comes to attracting customers."

'It's difficult to come but it's difficult to host'

Smaller businesses are facing a bleak outlook this winter with bills for electric, gas and water having tripled since last year. It is leaving some in the town considering shutting during the typically quieter months of January and February, where a profit from trading cannot be guaranteed.

Lindsey Holland, owner of the Cleeve Hill Hotel and a founding member of the TURF group, said: "There's a fine line between ensuring that guests understand and respect the situation that's happening within Cheltenham and not just absolutely cashing in on the fact that the prices are inflated.

"I would've thought most guests would understand that demand does increase price but I think if people are smart, do repeat bookings and speak with places they've stayed with before, I'd like to think they'd be rewarded in some way.

"The cost of living crisis is affecting everybody. It's got to be a bit of an understanding on everybody's part that yes, it's difficult to come but it's difficult to host at the moment. The guests cannot pay as much as I'd need them to in order to cover the costs. It's just really tough."

At the November meeting, Cheltenham racecourse launched the 'Love Our Turf' campaign with local stakeholders to address anti-social behaviour from racegoers in the town, which can also prove a costly problem for hoteliers.

Holland added: "I'm full of regular guests and it's a lovely family feel, but very sadly there's a group of people who come racing and cause trouble and we need to ensure they stay in the bigger hotels.

"I cannot afford to refurbish. One couple once broke a shelf off the wall and the whole wall needed replastering. One person ruins it for everybody else."

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