While the sector continues to outperform the FTSE 350 in gender diversity across leadership tiers, ethnic diversity has regressed, with many boards remaining all-white and women still underrepresented in top roles like chair, chief executive and chief financial officer.
The sector's inclusion maturity score has improved from 66% to 72.4%, reflecting broader strides toward diversity and belonging.
Tea Colaianni, founder and chair of WiHTL & DiR, said: "As an industry, we know that inclusion is vital to building stronger, more successful organisations. When people from different backgrounds, perspectives, and experiences have a seat at the table, businesses make better decisions and deliver better results.
"We’ve made encouraging progress, but there’s still much more to do. Creating truly inclusive workplaces requires continued focus and intent ensuring that everyone, regardless of their starting point, has the opportunity to contribute, grow, and thrive."
The report was launched at the annual WIHTL & DiR Summit where more than 650 senior leaders from across the sector came to share thoughts and insights on inclusion in the workplace.
Sophie Smith, chief people officer at Compass UK & Ireland, added: "At Compass, and across the wider hospitality industry, we can use that collective power for real impact. We can intentionally target communities and neighbourhoods that have historically been excluded from opportunity, and give people the chance to build skills, confidence, and careers they might never have imagined possible.
"Hospitality can genuinely change lives - it offers a pathway to progression that’s open to everyone, regardless of background or education. But for that to truly resonate, visible recognition matters. We need to shine a light on the people, the stories, and the businesses that are driving diversity and inclusion every day.”