Hotel insolvencies rose by 19%, survey reports

Hotel insolvencies in the UK increased by 19% over the past year as a result of rising costs, research has shown.

A report from national accountancy group UHY Hacker Young revealed hotel company insolvencies jumped from 127 in 2022/23 to 151 in 2023/24.

Increased staff costs, food and drink prices, and the inability to pass on additional expenses to customers amid reduced spending across the board led to the uptick in closures, the report said.

Businesses cutting back on corporate ‘away days' also contributed to the fall in hotel revenue, as did low occupancy in small hotels and the drop in international tourists visiting the UK.

Brian Johnson, partner at UHY Hacker Young, said: "The hotel industry continues to go through a very rough patch.

"The hotel industry would like to see much more help from the government in areas like visa rules, the return of tax-free shopping for tourists and more capacity at our airports."

By contrast, recent data from the RSM Hotels Tracker revealed the luxury hotel market in the UK performed particularly strongly as a "clear front runner" in the last few months of 2023.

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