Why are so many hotels falling into receivership?
Insolvency-related UK hotel sales are expected to reach record levels in 2013, with the decision by several banks to rapidly accelerate the deleveraging process widely accepted as the reason for this trend.
The recent sale of 42 Marriott hotels, which were actually placed into Administrative Receivership back in 2011, has prompted many people to suggest that 2013 will comfortably exceed any figures which previously existed in this sphere.
But is there any particular reason why this is happening?
The impact of technology
It is difficult to pinpoint one particular reason why such a large number of hotels are falling into administration or LPA Receivership (LPA) within Britain. There has always been a great deal of competition for the hotel trade, but perhaps this has increased in recent times.
Websites such as hotwire.com allow consumers to find discounted deals with hotels that are perhaps struggling to fill all of their rooms. If you choose not to advertise on such a site then you may be being left behind.
If you then factor in the fact that so many banks seem to be speeding up the deleveraging process, the amount of administration/LPA-related transactions is hardly surprising.
Contacting an insolvency specialist
Property can be a key asset for a struggling business and our specialist property team at Moorfields can guide you through the numerous issues that could potentially arise with property insolvency. It is a complex area which means that it is a very sensible idea to seek advice from those who have specialist knowledge.
It can be difficult to assess how much financial trouble your company may be in as many directors and company managers are unable to look too far ahead into their financial future.
A restructuring and insolvency specialist can assist business leaders in making crucial decisions that will determine the financial future of their company.