Source/Contact: Caterersearch, 02/02/2009

Insolvencies in the hotel sector doubled in the final months of 2008 as the UK economy went into recession and things are set to get much worse, according to a report by PricewaterhouseCoopers.  In total 36 hotels failed in the final three months of 2008, the highest quarterly figure since the early 1990s and double the 18 recorded in the previous three months. There were also 15 insolvencies in the final quarter of 2007, which brought the total number of insolvencies over 2008 to 87, almost double the total of a year earlier.  The biggest casualty was Folio Hotels, whose assets were carved up last week by administrators between Mulbourn, a new company set up by the group's former management, and Bespoke Hotels.