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."
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