Hospitality market

from HNN (11/4):

Torrid market takes toll on hospitality
04 November 2008 9:39 AM
By HNN Newswire

"Pubs and bars, restaurants and most recently hotels are experiencing very difficult trading conditions as the industry reels from a 95 per cent increase in insolvent hospitality and leisure (H&L) companies in under two years.

Insolvency figures from the Business Recovery team at PricewaterhouseCoopers LLP, out on Tuesday, reveal the latest insolvency figures for quarter three of 2008, showing another 300 H&L companies going out of business. Those hit hardest were pubs & bars, restaurants and hotels.

Consumers carry on camping

The increase in hotel failures reflects both the cyclical nature of the industry and the extremely difficult trading conditions experienced in some markets often due to an increase in new supply.

UK hotel performance has seen a slowdown in demand in the second half of the year when trading seems to fall off a cliff.

The trend is likely to get worse from Q4 2008 onwards as the combined impact of a reduction in business travel, conferences and leisure result in reduced demand and lower profitability." ...

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