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UK hotel insolvencies at five-year high

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UK hotel insolvencies are at their highest in five years, according to a report from accountants UHY Hacker Young.

The twelve month period leading up to September 2019 saw a 60% rise in insolvencies. Whereas 90 sites were hit by insolvency in 2018, 144 were affected in 2019.

The UK accountancy group suggests that the rise of Airbnb and a decline in the market are to blame.

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The report suggests that hoteliers are in a difficult position – forced to lower prices by cheaper competition, yet incurring higher costs in the current economic climate.

UHY Hacker Young partner Peter Kubik commented: “The hospitality sector is facing upheaval. Those hotels that are unable to fund-change face being left behind. On top of that, Airbnb is increasing its market share, and not just amongst millennials.

“Hotels – many of which are lagging behind in their use of technology – are going to have to quickly bring themselves up to speed.”

During the last year a number of chains have reported good turnover despite the challenging market conditions. See Hand Picked Hotels’ report below:

Tags : AirbnbDatamarketMARKET DATAreport
Sam Lewis

The author Sam Lewis

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