Expect more hotel insolvencies: PwC
Hotel insolvencies doubled during winter
More hotel insolvencies are likely for the hotel sector, after a doubling of
the number of companies failing in the fourth quarter of 2008.
PricewaterhouseCoopers says 36 hotel companies entered an insolvency process
during the quarter, as tourism numbers have fallen sharply in the economic
downturn.
Partner Stephen Broome says the hotel sector tends to be hit later in the
downturn cycle than retail, in part due to extended lead times for room
bookings.
He says the recent casualties are ‘just the beginning,’ but that the industry
is more robust than in previous downturns, with better management for the most
part.