Hospitality insolvencies drop by 31% MoM in December

Insolvencies in the sector also dropped by 7% YoY to 3,464.

Accommodation and food services insolvencies dropped by 31% month-on-month (MoM) to 224 in December 2024 from 327 in the preceding month.

Insolvencies in the sector also dropped by 7% year-on-year (YoY) to 3,464 in 2024 from 3,737 in 2023.

“Food and accommodation insolvencies in December fell to their lowest level in over two years,” said Saxon Moseley, partner and head of leisure and hospitality at RSM UK.

However, Moseley warned of challenges ahead as operators try to juggle fragile consumer confidence whilst also preparing for a wave of upcoming tax and regulatory changes that will drive up operating costs.

“With real wages now growing at 2.5%—the fastest rate in four years—this should eventually feed through to higher household consumption and provide a boost to the hospitality industry,” he added.

Moseley also said that businesses able to endure the National Insurance rises will reap the benefits of an uptick in consumer spending, which is expected to come later this year.

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