Fall in value of sterling leads to 18% decrease in hotel insolvencies

27 November 2017 by
Fall in value of sterling leads to 18% decrease in hotel insolvencies

UK hotel insolvencies has seen an 18% decrease in the last year due to the fall of the value of the pound which has attracted more overseas tourists and encouraged ‘staycations'.

A study published today by Moore Stephens, an accountancy firm, revealed that only 1% of hotels are now at risk of becoming insolvent and in the last year the number of hotel insolvencies was down from 98 to 80.

Since the Brexit vote in June last year, sterling has lost around 10% to 13% of its value against the dollar and the euro respectively.

Figures from the Office for National Statistics claim that there has also been a 9% increase in international visitors in the past six months to 2.5m people.

Vincent Wood, partner and head of hotels at Moore Stephens said that hotels should not become too complacent despite the current upturn in trading due to issues such as staff shortages, rising costs and the threat of Airbnb.

"The potential drying of this vital reservoir of staff is a problem hotels have faced for many years and it will be a real challenge for them in the coming period."

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking