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.
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: