Hotel goes bust every two days

UK
hotel companies are
going out of business at the rate of one every two days according to new
research.

Accountancy firm Wilkins Kennedy found
the recession has hit hotels hard despite a number of people choosing a
‘staycation’ as opposed to going abroad this
summer.

A total of 53 hotels
in the UK went under in the three months to June,
many of them victims to banks refusing to lend to those hit by falling property
prices.

Anthony Cork,
director of Wilkins Kennedy says: “The crash in property values has not just
impacted on the real estate and construction sector. It has also sent a
shockwave through the other sectors like hotels where property makes up a
substantial part of a company’s value.

“The growth in the
‘staycation’ might not cover the revenue UK
hotels have lost from cutbacks in business travel, lower spend on corporate
conferences and the lower spend per guest on extras like spas, room-service and
dinner.”

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

Up Next

Related Posts

banner