Hotels in Yorkshire have seen a marked improvement in their fortunes – and are now among the region’s best-performing businesses.
New research by insolvency trade body R3 showed that just 16% of the 448 hotels in Yorkshire and the Humber had a higher than normal risk of insolvency in July and August – with levels now lower than those across the UK.
In August, 18% of the UK’s 8,166 hotels had a higher than normal risk of insolvency.
Yorkshire was the region whose hotels put in the strongest performance in the UK last month, only exceeded by London with 14% at risk.
R3 uses research compiled from Bureau van Dijk’s “Fame” database of company information to track the number of businesses in key regional sectors that have a heightened risk of entering insolvency in the next year.
Chris Wood, R3’s vice-chairman for Yorkshire and partner at Clough Corporate Solutions in Cleckheaton, said: “The hotel sector across the UK has faced some tough conditions in recent years and it’s encouraging to see it finally starting to improve, partly as a result of increased domestic consumer spending and also boosted by our hosting of international events such as the Tour de France and the Commonwealth Games, both of which have attracted more overseas visitors,
“There’s no doubt that the Grand Depart delivered a huge boost to the region’s hospitality sector, not only from the hundreds of thousands of visitors who descended on Yorkshire in July, but also from the positive feelings created by the phenomenal success of our hosting of this world-renowned event.
“Having seen the glory of the Yorkshire countryside on TVs around the globe, hopefully the Tour-effect will continue as more people from both the UK and overseas choose to visit the region over the next few years.”
Other sectors which continued to show a strong recovery in Yorkshire were agriculture and manufacturing which put in the strongest performances last month with just 12% of agricultural businesses at risk in August and only 17% in manufacturing having a higher than normal risk of insolvency.
Mr Wood said: “We are seeing an overall improvement in many sectors.
“However, during the recovery period it is vital that businesses continue to operate with caution.
“With cash reserves depleted and funding still difficult, careful planning and cash flow management remains essential.
“As ever, the key is to seek professional help at the first signs of financial difficulties.”