Insolvency risk for hotel firms revealed in report

The Invincible, on Wickham Street, Portsmouth. Picture: Chris Moorhouse

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A REPORT has revealed that the number of hotel businesses at greater than normal risk of insolvency is slowly improving.

The south east is now ranked as 8th out of 11 regions in the UK, according to research by restructuring and insolvency trade body R3.

The figure, which now stands at 29.5 per cent, has increased month on month since January 2017.

However, R3 states that March figures demonstrate a distinct slowdown of the rate.

The sector most at risk is professional services, with 49.2 per cent closely followed by technology and IT at 48.8 per cent and construction with 43.1 per cent.

Vice chairman of R3’s Southern Committee, Garry Lee said: ‘It’s encouraging to see the slight improvement in the figures for the hotel sector.

‘It is hoped that this will continue and be helped by a good summer and the potential of more holiday makers opting for a staycation in the light of ongoing political and economic uncertainty.’

The firm is advising business owners to monitor finances carefully and plan for foreseeable eventualities.