Wednesday 27 May, 2020 TOP STORY Top 30 UK hotel groups have debts 44 per cent higher than during credit crunch UK: Boodle Hatfield, a private wealth law firm, has revealed that the total debt for the UK’s top 30 hotel groups now stands at £6 billion versus £4.2 billion in 2009. LATEST NEWS If you missed our last newsletter... check out the stories below!
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• The latest report in to the debt statistics of the top 30 UK hotel groups makes for extremely sobering reading. Law firm Boodle Hatfield has revealed the total debt for the UK’s top 30 hotel groups now stands at £6 billion versus £4.2 billion in 2009.
Worryingly, given the lack of revenue streams hotels are experiencing this figure is going to have to rise for many of them to survive, and of particular concern is that the debts of the top hotel companies are now at an average of 106 per cent of shareholders assets, compared to 91 per cent in 2009.
The government has been widely lauded for the financial initiatives it has introduced since the lockdown but Rajeev Joshi, partner at Boodle Hatfield, is concerned that hotel companies are not aware of some of the schemes available to them. He says: “Providing more visibility and certainty over when the sector is going to start opening up again is important for lenders' confidence. Removing some of the guess work involved in the sector’s financial modelling will be key. We would also like to see the Government and the Bank of England more actively marketing the various funding schemes they have made available to the sector. There is a real risk that some borrowers won’t apply for available support because they assume they won’t get it.”
He stresses that further measures will be necessary to support the hotel sector, such as allowing hotels to defer lease payments and management contract fees.
If you are not sure which government measures you can apply for, click here to find out more.
• Don't forget to join us next week for the second in the Urban Living webinar series. It promises to be an intriguing and extremely topical discussion, titled The Future of Work.
Joining me for the discussion will be Giles Fuchs, CEO and founder, Office Space in Town;
Click here to register for the no cost webinar.
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George Sell, editor
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