A STRONG performance from Yorkshire’s tourism industry has seen the region named as the safest places to run a hotel in Britain, boasting the country’s lowest insolvency rate in the sector.
The proportion of hotels in the region at higher than normal risk of insolvency fell for the fourth consecutive month, giving it the lowest level of risk in the sector across the UK.
Yorkshire now boasts the smallest proportion of hotels at higher than normal risk with 18 per cent and is only matched by London.
According to research by insolvency trade body R3, in June, just 88 of the 488 active hotels in Yorkshire were identified as being at higher than normal risk, a fall of over 4 per cent since the previous month.
Adrian Berry, chair of R3 in Yorkshire and restructuring partner at Deloitte LLP, said: “The region’s hotels got off to a strong start in January and have generally performed well over the last six months. With the economic picture looking relatively positive, travel and tourism in Yorkshire has remained buoyant, no doubt boosted by high profile sporting events such as last month’s Tour de Yorkshire which saw over a million spectators turning out to watch the race.
“Looking at other sectors, Yorkshire saw improvements in agriculture, technology and IT, as well as professional services and construction with decreases in the number of business at higher than normal risk of insolvency compared with last month.”
However Mr Berry warned that risk for manufacturing and restaurant sectors in the region remained high.