Customers of hotels forget that 20% of what they are paying goes in VAT to the government. This coupled with high wage costs and the issues above making running a successful hotel hard work and it is only really a profitable business once you have a critical mass of people wanting to book all the time.
Typical issues for hotels are also high capital costs to buy the property and the continuous need for refurbishment using up any spare cash flow.
Once a hotel gets a bad credit rating as well the credit card providers start to hold back card sales and may withhold funds. Nearly everyone pays for their hotel room now by card.
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Licensed Insolvency Practitioner