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The Total Debt of Hotels in Ireland is More Than 6 Billion Euro
It was revealed that the total debt of hotels in Ireland has reached a tremendous sum – 6.7 billion euro. More than one third of hotels in the region experience financial difficulties. The total number of Irish hotels is 850, and almost 300 are in trouble. This sad information has been presented by Irish Hotels Federation.
However, there is also some positive news. For example, in 2012 more than a half of hotels (54%) increased their turnover. Moreover, two thirds of Irish hoteliers participating in the survey are sure they will improve their stats within 3 years. When asked about most typical problems, Irish hoteliers name high labour costs that account for almost 40% of the turnover! Other typical problems mentioned are overhanging debt and local authority rates.
Of course, such a huge debt definitely needs servicing. The total debt will be reduced in 2013, as Jurys Inns were bought by a group of investors for 1.16 billion euro, and two Jurys Doyle hotels in Ballsbridge were bought for almost 400 million euro. On the other hand, many hotels will increase the amounts of their loans. For example, currently the total sum of AIB loan estimates 2.6 billion euro and it’s still growing.
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