The number of hotels in distress has leapt almost fourfold in the past year, Begbies Traynor’s Red Flag Alert identifies.

 

The insolvency specialist found 2,512 hotels were in financial distress in the fourth quarter, up from 679 a year before. The Financial Times reports how in the past 18 months Newcastle and Gateshead have opened seven hotels comprising 1,000 bedrooms with the prospect of another 1,000 rooms opening in the region. Aparthotels Adagio, owned by Accor, plans to open five more hotels in the UK following last month’s debut of its first self-catering apartments in Liverpool. Best Western says more hotel rooms are being developed in the UK than anywhere else in Europe, including Russia. However, the Financial Times reports the market is becoming increasingly competitive with hotel openings increasing at a time when bookings are falling. Zolfo Cooper says experienced investors see potential for growth in hotels in the major UK cities outside London.