Coronavirus

Hotel and restaurant loan write-offs soar 65%

The end of the moratorium on winding up petitions on 30 September and end of the suspension on landlord action for rent arrears in March 2022 will ‘likely trigger a sharply increased number of insolvencies in the sector’

Write-offs of loans to restaurants and hotels rose by 65% during the course of the pandemic, with £99m written off by banks and other lenders in 2020/21, up from £60m the prior year, according to audit, tax, and advisory firm Mazars.

The firm found that write-offs in lending to the leisure sector are starting to rise once again as Covid pressure “begins to bite” for hospitality, which has been hit hard by the financial strain of successive lockdowns.

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