One of London’s best-known five-star hotels is being taken to court by the UK’s tax authority over unpaid sums, City A.M. can reveal.
Hotel Cafe Royal, a top-tier venue popular with the capital’s rich and famous, has been issued with a winding up petition by HMRC according to court filings seen by City AM.
A winding-up petition is a formal legal process used against a company that has not paid its debts. It is commonly used by HMRC against companies that have failed to pay tax bills more than 21 days after a statutory demand and can result in their assets being forcibly sold.
The Cafe Royal was originally conceived as a restaurant and meeting place by French wine merchant Daniel Thévenon in 1865, and its notable patrons have included authors Virginia Woolf, Oscar Wilde and D.H. Lawrence.
Former prime minister Winston Churchill, boxer Muhammad Ali, and Diana, Princess of Wales, also visited the Cafe Royal.
It was redesigned and reopened as the Hotel Cafe Royal in 2012 and, since its renovation, has hosted private parties DJ’d by American rapper Kanye West and hosted by supermodels Kate Moss and Naomi Campbell.
The hotel’s accounts for the year ending December 2024 show the firm made an annual turnover of £38.7m, up on the previous year, but suffered a £1.5m pre-tax loss.
While predicting growth in 2025, the accounts cited the impact on Middle Eastern travel caused by the war in Gaza and the uncertainty around custom by American travellers posed by Trump’s presidency among potential risks to the hotel’s profitability.
HMRC has adopted an aggressive stance under the Labour government, and tax experts have told City A.M. they expect to see increased enforcement of tax regulation in 2026.
The government has committed to invest an additional £555m annually in HMRC to boost tax compliance, and aims to raise an extra £5.1bn in tax per year by the end of the current Parliament.
HMRC and Hotel Cafe Royal Management Limited have been contacted for comment.