The UK hotel sector is feeling the heat.
Read Upside - Autumn 2018
While the sector as a whole has reported steady figures this
year due to the weak pound and an improved global economy, the road
ahead looks uncertain. Some reports suggest that 1,800 hotels have
a 30% risk of insolvency over the course of the next three years,
and the sector has seen increased pressure from alternative options
such as Airbnb.1
Hotels face difficulties filling vacant positions as the cost of
labor has increased. The continued uncertainty around Brexit has
resulted in a slowdown of applicants from the EU and has caused
some European employees to leave the country. Similarly, the weaker
pound has made the UK a less attractive place for Europeans to
work. On the flip side, the weaker pound has made the UK an
attractive travel destination, meaning the hotel sector has seen
increased bookings from overseas travelers.
