COVID-19 Impact in Hospitality Financing and the Current Climate for Borrower’s and Lender’s in the Hotel Industry
Due to the recent unprecedented event, the hospitality industry along with all other industries around the world has been damaged by COVID-19. Which results in a world economic crisis with domestic & international travels rapidly slowing, occupancy falling and hotels closing.
The world is now facing the unprecedented situation of the new Coronavirus, COVID-19, a "public health emergency of international concern and pandemic" according to the World Health Organisation. The effects, actual and projected, of COVID-19 are evident across the globe and are changing in real time.
Venice is widely known for the crushing crowds of tourists. The seasonal events that take place on this historical city, such as the Venice Architecture Biennale or the Venice Carnival, have placed it to one of the most sought-after destinations.
As soon as the referendum result regarding UK's exit from the EU hit the news, concern and uncertainty sparked among many in the UK, especially within the hospitality and tourism industry, which is the fourth largest in Britain.
Boutique hotels have started facing increasing difficulties to operate. Hospitality giants such as Marriot International, Accor, and IHG are following an expansionary strategy by acquiring collections of boutique hotels.