Insolvency & Rescue Solutions for Hotels
The UK hotel sector is navigating a period of adjustment and recovery, facing challenges that include fluctuating tourist numbers, changes in domestic travel habits, and the evolving demands of business and leisure guests. While the industry aims to rebound to pre-2019 business levels, it is clear that adaptation and strategic planning are essential for sustainability and growth.
The reduced frequency of events, along with shifts in travel preferences and behaviours, has impacted hotel occupancy rates significantly. These factors necessitate a reevaluation of operational strategies and financial planning to ensure resilience in a changing market.
At Company Debt, we specialize in delivering targeted insolvency and restructuring solutions for the hotel industry. Our team of licensed insolvency practitioners is prepared to provide a tailored, no-obligation consultation to address your specific challenges.
Sector update: May 2026
This page was first published in August 2021 and has been updated in May 2026.
UK hotel insolvencies rose in 2023 and 2024. Budget and mid-market properties have been most affected by rising operational costs. Leisure demand has been stronger than business travel, which remains below 2019 levels.
If your business is under financial pressure, our advisers can explain the options available. Get free, confidential advice today.
Hotel Pressure Points
What are the Reasons for Hotel Insolvency?
This has meant a serious impact on earnings. Hotels around the country are now at risk of insolvency, with a number of liquidations currently taking place.
Research from PwC also found that the daily revenue for a hotel room, which is a key indicator, will also not recover until 2024 in London and in 2023 for the rest of the country.
The one bright spot, for hotels in tourist hotspots, has been a big rise in British holidaymakers, although those in major cities have remained largely empty. Meanwhile, as the economy slowly starts to grow again and hotels are used more, only slow progress is expected – in particular in London, which had been used to high prices and occupancy.
However, the pandemic is not solely responsible. Airbnb was already having an impact and giving people more options where to stay and leading to more hotel insolvencies. Pricing can also be more competitive and pressures on the hotel sector have shown that there is a need for operational efficiency and in particular, scope to leverage technology advantages. Some hotels have failed in this area, while all are likely to be grappling with a shortage of staff, resulting from Brexit and a lack of interest domestically in hospitality work, along with more expensive food and drink costs. There are many bumps in the road ahead.
Help for your insolvent hotel
If your hotel is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.
Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.
Knowledge – Insight – Solutions
We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.
Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.
We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.
As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.
Book My Consultation
If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.
- Your free consultation will be led by one of our experienced London insolvency practitioners
- You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
- The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
- We specialise in helping limited company directors needing immediate professional debt advice
