Hotel insolvencies still on the rise despite recession end

Hospitality and leisure is the only UK sector to have experienced a rise in insolvencies over the fourth quarter of 2009, according to PricewaterhouseCoopers.

Hotel insolvencies still on the rise despite recession end
Hotel insolvencies still on the rise despite recession end

The corporate sector's lack of activity, which has included a drop in events being held at hotels, has been blamed for the continued problems for the industry.

"Very few hotel owners have experience of operating in the current harsh climate, and must identify realistic options, diagnose problems, and implement a survival strategy," said PricewaterhouseCoopers partner David Chubb.

"The options [for the venues] could include financial or operational restructuring, strategic partnering or joint ventures, cost reductions or simply tighter cash flow management."

Hotels saw a 68% hike in insolvency levels from quarter three to quarter four last year, and a 31% increase year on year.

In happier news the UK economy has finally emerged out of recession, according to Government figures.

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