Berkshire: Region’s hotels buck UK trend, says R3

Berkshire hotels are faring better than their counterparts across the UK, according to research from local insolvency experts.

R3, the insolvency trade body, has released figures which show the county's hotels are in better financial shape than the national average.

The research reveals that of the 101 hotels examined in Berkshire, only 19% have a higher than normal risk of insolvency. Nationally the figure stands at 22%.

The positive picture for Berkshire’s hotel trade follows recent news from Travelodge that three of its hotels in the borough of Reading are set for a £1 million facelift. Rooms at hotels in Oxford Road in West Reading, Basingstoke Road in Whitley and at the Moto service station on the westbound M4 will be revamped according to the latest announcement.

Julia Branson, from the Southern Region Thames Valley Group of R3, said one of the reasons that hotels could be doing so well is because hoteliers are diversifying more from just providing bed and board for the night.

"Many hotels realise they have to keep ahead of the game," she said. "They are getting involved in events and providing entertainment, such as live music, which draws in the customers."
Berkshire, and Reading in particular, is also geographically well placed, being close to London, Heathrow Airport, Henley and Ascot, which brings in the seasonal visitors in addition to the regional economic influence of major businesses and the retail sector.”

Branson, who runs her own restructuring firm in Reading and is also a partner at James Cowper, added that Berkshire’s hoteliers could see a further boost to their profits in coming months with a full summer programme ahead of sporting, music and other leisure events.

She said: “It's encouraging to see that Berkshire hotels are faring well and so few are at higher than normal risk of insolvency. Thriving hotels are an indicator that other sectors in the local economy are picking up.”

However, she cautions that the figures show some hotels still have a heightened risk of insolvency and advises all hoteliers to get their business plan right, seek help early to find solutions for issues that may be causing concern.  "The sooner a distressed business takes action to overcome their problems, the more solutions are available to resolve the position. Businesses have more chance of survival if they do this, particularly in the South East."