Third of hotels struggling as room rates plunge

A THIRD of Irish hotels are in difficulty at a time when room rates have plunged to lows last seen a decade ago.

At the end of 2009 Irish hotels had outstanding debts of €6.4 million and figures from a Horwath Bastow Charleton hotel survey found that profits have fallen 50% since 2007.

Over a third of hotels are in difficulty and experiencing “severe cash-flow problems” according to the survey. It also said that many hotels are in a “very unstable position” with profit levels insufficient to meet their bank loan commitments.