Cull insolvent hotels, says IHF

THE Irish Hotels Federation (IHF) has called for a cull of insolvent hotels and a closure of 15,000 available rooms, before next year’s peak season, as part of a wide-ranging series of recommendations aimed at saving the industry.

According to the report – which was researched and compiled for the IHF by economist Peter Bacon – the hotel sector is insolvent and the industry’s level of indebtedness now tops €1 billion.

Mr Bacon has put forward a number of recommendations aimed at stabilising the industry, including the introduction of a Government loan guarantee scheme to aid viable hotels, the temporary or permanent closure of some hotels and the removal of existing barriers to insolvent hotels closing down.