One in three companies in the UK hotels industry could change ownership as result of the current economic climate, according to a new study by financial analysts Plimsoll.
The Plimsoll Industry Analysis - Hotels report identified 334 companies which have a sizeable cash reserve on their balance sheet, which, owing to record low interest rates, is generating little income.
"These companies are now in the position to buy up large chunks of market share at rock-bottom prices and make that money work for them," said David Pattison, author of the report. "They must be like kids in a sweet shop at the moment - all those distressed competitors available at a fraction of their true value."
The study analysed 819 companies with a turnover of more than £1m per year and suggested that 355 are primed to be taken over.
"Buying one of these businesses represents a massive opportunity for someone to enhance their share of the market," Pattison said. "Either way, the market is set for a wave of takeovers in the next months."
Plimsoll Industry Analysis - Hotels is available to readers of Caterer and Hotelkeeper at a discounted price of £300 (usual price, £350). For further information, call 01642 626400 and quote reference PR/HP40.
By Janet Harmer
E-mail your comments to Janet Harmer here.
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk
Looking for a new job? Find your next job here with Caterersearch.com jobs