Are Hotel Insolvencies Set To Increase Following Brexit?

They are according to a recent survey of nearly 2,000 hotel companies.

According to accountancy firm Moore Stephens, 1,800 hotels had a 30% risk of insolvency over the course of the next three years.

The hotel industry is not alone with the travel industry also facing the threat of more insolvencies with costs increasing due to a weak pound and some tourist destinations placed off limits due to terrorism threats.

One thing that may help hotels is an expected increase in the number of people opting for staycations. The cost of travelling to Europe and converting GBP to euro may put a lot of people off when they see are getting far less money to spend on holidays in popular destinations such as Spain and France.

Another problem which can be attributed to the weakness of GBP against other currencies is the rise in food and beverage costs. The recent Budget added more to this pressure by increasing tax on wine as well as business rates. The latter will have hit many smaller hotel operators and pubs hard.

If your hotel is facing the threat of insolvency, speak to one of our advisors before it’s too late. We may be able to help turnaround your business.