Business water for hotels

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Home / Who we help / Hotels

Last updated August 2026

Who we help

Business Water for Hotels

A hotel is one of the most water-intensive buildings on any high street. Bedrooms, laundry, kitchens, and sometimes a pool or spa, all draw around the clock.

You can switch retailer. Hotels have had that right in England since 2017. Most never have. This page covers where hotel water costs come from, how to switch retailer, and where overpayment usually hides.

Wholesale supply Comes from regional water companies (Thames Water, Severn Trent, Yorkshire Water, and others).
Contracting Independent hotels can contract directly with retailers, and groups can contract centrally across every property.
Biggest savings levers Tariff reviews, return to sewer allowances and surface water drainage checks.
Occupancy Water use tracks occupancy through the year, which makes actual readings rather than estimates the honest basis for the bill.
Market opened England in 2017 and Scotland in 2008.
Licensed retailers Around 20 are licensed by Ofwat to supply non-household water.

Where the money goes

Why hotels pay more for water than they should

The usual story on a hotel bill is that the supply has run on the same arrangement through several changes of management, and nobody has matched the tariff or the sewerage calculation to how the hotel actually operates. The five checks further down are where that shows up.

Hotel water use runs around the clock and swings with occupancy. Laundries and kitchens draw in heavy blocks, bedrooms draw morning and night, and a pool or spa adds a steady base load. A default commercial tariff prices all of it flat.

The sewerage side deserves its own look. Pool evaporation, laundry steam, irrigation and water that leaves in food and drink never reach the sewer, and billing that assumes nearly everything returns overstates the charge on a building this size.

Where your hotel’s water bill actually goes
Clean water
Wastewater
Drainage
Standing
Retail
Clean water (wholesale)Wastewater (wholesale)Surface drainageStanding chargesRetailer margin

Where it shows up

The five areas hotels overpay

Where hotels overpay and why it matters.

01

Return to sewer assumed too high

Pool top-ups lost to evaporation, laundry steam, garden irrigation and kitchen use all reduce what actually reaches the sewer. A corrected return to sewer allowance brings the sewerage charge in line with how the hotel really runs.

02

Estimated billing across the seasons

Estimates built on high season carry into low season until actual readings correct them. Submitting regular readings keeps charges in line with occupancy.

03

Surface water drainage on grounds and car parks

Charged on the footprint by default, but how drainage is assessed depends on your regional wholesaler. Where car parks and grounds drain to soakaways rather than the public sewer, the charge can be challenged, and in many wholesaler regions rebates can be backdated.

04

Leaks hidden in a big building

A passing cistern on the third floor or a faulty ball valve in a tank room can run for months in a building this size. Night-time meter readings when the hotel is quiet are the fastest check.

05

Group properties on separate default tariffs

A group running each hotel on its own inherited tariff leaves money on the table, as retailers can discount on a single contract with one point of contact.

Results

Case studies

Case study · Billing audit
Inspire Leisure
£110,000 refund

Recovered on historic surface water drainage charges that should never have applied.

Read the case study →

Case study · Multi-site switch
Thornton Facilities Management
14 sites, one contract

Consolidated multi-site billing onto a single contract with one retailer and one point of contact.

Read the case study →

Worth knowing

Owned, managed or franchised, who signs

The water contract follows whoever holds the supply account, which in hotels can be the owner, the management company or the franchisee. Whoever pays the bill has the right to choose the retailer.

Management agreements are worth checking, since utilities often sit with the operator while the building sits with the owner. The official market rules for business customers are published by Open Water, the body that runs the market.

The market

Can hotels switch water supplier?

Yes. England’s non-household water market opened to competition in April 2017 and Scotland’s opened in 2008, so every hotel can choose a different water retailer. Wholesale supply still comes from your regional water company; only the retailer (the company that bills you and reads your meter) changes.

The 12 retailers below are all licensed by Ofwat to supply non-household water. Pricing, service and sector experience vary from retailer to retailer.

Choose your route

Routes to procurement

Three ways hotel operators typically bring a new water contract in. Each comes with its own trade-off between control, effort and how sharp the price lands.

1

Direct with a retailer

The hotel signs straight with a licensed retailer. Best for an independent property that wants a sharper rate. You handle the comparison and the switch yourself.

Effort MediumSpeed 4 to 6 weeks

2

Group contract across properties

Groups can put every property on one central contract with one retailer. Efficient at volume, but each hotel is tied to whichever retailer the group has chosen.

Effort LowSpeed 2 to 4 weeks

3

Broker-led market test

A water broker compares the market for you, handles the paperwork and manages the switch from start to finish. Nothing changes for guests.

Effort LowSpeed typically 1 to 5 days

Why choose The Business Water Shop

  • Award-winning independent brokerage, not owned by or tied to any water retailer.
  • Rated 5 stars on Google and 5 stars on Trustpilot by UK businesses.
  • Experts with experience in business water for hotels, guest houses and hospitality groups.
  • We compare quotes from up to 14 licensed retailers.
  • We handle the whole switch, from the comparison and paperwork to the supplier contact.
  • One point of contact for multi-property portfolios.

Questions

Hotel water FAQs

Do hotels pay business water rates?

Yes. Hotels are non-household customers, which is the open market we operate in. Whoever holds the supply account chooses the retailer.

Does the pool change how we are billed?

It can. Pool top-up water is partly lost to evaporation and backwash goes to drain in a controlled way, so how the pool is metered and treated in the sewerage calculation is worth checking on any hotel with one.

We are quieter in winter. Should the bill follow?

Usage certainly falls, and the bill follows if readings are actual rather than estimated. Submitting readings through the low season stops estimated bills carrying summer usage into winter.

Will switching disrupt anything on site?

No. A switch is paperwork rather than plumbing. There is no interruption to supply, no engineer visit and nothing changes for guests or staff.

Our laundry is outsourced. Does that matter for water?

It removes one of the heaviest uses from the building, which should show in the volumes the tariff is judged against. If laundry moved out since the contract started, the account is worth reviewing.

We run several hotels. Can they go on one contract?

Yes. Retailers operate nationally, so a group can consolidate sites in different wholesaler regions onto a single retailer, one contract and one point of contact.

How do I get a quote?

Send a recent water bill for the hotel. The SPID, annual volume and current retailer are all on it. We come back within two working days with an alternative quote and a flag if anything looks worth checking on allowances or drainage.

The Business Water Shop

Independent water broker for UK businesses. We compare, switch and audit business water for UK businesses.

020 8051 7675contact@thebusinesswatershop.co.uk

The Business Water Shop is a trading name of Clearsight Energy Ltd. Registered in England & Wales, company no. 12369973. Registered office: Unit 1C Eagle Industrial Estate, Church Green, Witney, Oxfordshire OX28 4YR. © 2026 Clearsight Energy Ltd.