‘Hotel sector can’t sustain €5.3bn debt’

The Irish hotel industry still needs a further €1.4bn in restructuring to bring hotel debt to a sustainable level according to a new report by economist Professor Alan Ahearne.

The total debt in the sector has been estimated at €5.3bn which given the hotel sector’s income prospects, interest rates and the average maturity of the debt at the time, is not considered a sustainable debt level.

Prof Ahearne said that the indebtedness of the sector, particularly outside the capital, was dragging the whole industry down as it leads to under-investment in maintenance, refurbishment, renovation and innovation.