Publication
Restructuring in the hotel sector: what does the future hold?
While the hotel sector will rebound strongly in coming years as the economy recovers and travel restrictions are fully lifted, the immediate focus remains one of survival. Ian Corfield Restructuring Advisory
Synopsis
Whether internal or inbound generated, tourism is a significant contributor to the UK economy. Over the last decade, the sector has been among the fastest growing in terms of employment and, prior to the COVID-19 pandemic, analysts forecasted that it would contribute almost £260 billion a year to UK GDP by 2025. However, COVID-19 triggered a near total shutdown of international tourism and corporate travel, with many businesses in urban and city centre locations unable to benefit from the staycation boom that materialised between lockdowns. Hotels play a huge part in the tourism and hospitality sectors’ success and have therefore been some of the businesses most impacted over the past 12 months. Looking ahead, estimates from VisitBritain suggest that inbound tourism in 2021 will only recover by 21 per cent of 2020’s figure of 9.7 million visits 1 . To put it into context, this would still represent less than a quarter of the pre-pandemic total of 2019. So while the hotel sector will rebound strongly in coming years as the economy recovers and travel restrictions are fully lifted, the immediate focus remains one of survival. Here, we assess the state of play and discuss how individual hotels and groups will likely adapt through the course of 2021.
Ian Corfield Partner Restructuring Advisory London +44 (0)20 3005 4165 ian.corfield@frpadvisory.com
Phil Reynolds Partner Restructuring Advisory London +44 (0)20 3005 4270 phil.reynolds@frpadvisory.com
frpadvisory.com
frpadvisory.com i .
2
3
Made with FlippingBook - professional solution for displaying marketing and sales documents online