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The number of hospitality businesses entering insolvency eased slightly in Q3 2024, yet remained historically high, reflecting challenging trading conditions for the industry.
Some 2,657 accommodation and food service companies, including hotels, restaurants and pubs, closed in the nine months to September 2024, barely down from 2,715 in the same period last year, according to government data.
Offering little cheer, the number of monthly hospitality insolvencies has remained consistently over 260 during this year.
The Buchler Phillips Hospitality Index of insolvencies, which has tracked monthly figures since January 2014, softened from 231.6 in June to 186.4 in September. It peaked in August 2023 at 273.4 with a spike in the sector’s business closures.
Companies falling into administration during Q3 include pub owner Antic Hospitality Group in July, Birmingham’s Cube Hotel in August and the UK operator of TGI Fridays in September, with the loss of more than 1,000 jobs.
Jo Milner, managing director of Buchler Phillips, said: “Make no mistake: it’s still brutal out there. Hospitality has always been a tough business and, in the current climate, any short term easing in the insolvency figures shouldn’t be seen as a sign of sunlit uplands for the sector. Recent budget changes won’t have helped.”
