Issue 24: 19th June 2020

    Deep in debt, hotels face challenges

    Debt providers are set to share the pain of the hotel sector’s hiatus, as it moves to recovery. But despite fundamentally high levels of debt in the space, it appears unlikely there will be a move to foreclose, as in the aftermath of the financial crisis. Inevitably the sector is already seeing casualties, as smaller [...]

    Consumers look to homestays

    Early indications suggest that consumers are favouring homestays over hotels, in the post covid-19 booking marketplace. Data from the US market, pulled together by AllTheRooms Analytics, suggests Airbnb is a major beneficiary from the trend. As of the last week of May, it detected Airbnb 90 day forward bookings having risen 18.3% over a month. [...]

    Nordics reinforce capital structures

    Scandinavian groups Radisson and Scandic have tapped their investors for further cash to support their businesses through the tricky months ahead. As the companies’ key markets look to open-up once more, all eyes are on the easing of government travel restrictions across Europe. There is increasing hope that domestic travellers will want to stretch their [...]

    Shepherd Cox falters

    Fast expanding hotel investor Shepherd Cox has seen a third of its portfolio placed in administration. The company appears to be another casualty of the inflexiblity of the fractional ownership model, in the hotel space. Six individual companies, each an SPV with one hotel asset, have been placed in administration with consultancy Quantuma. The move [...]