Denmark - One in three Hotels on Brink of Bankruptcy
MONDAY, 07 SEPTEMBER 2009, Experts predict that hotels, hit hard by the recession, will suffer longer than other industries.
A double whammy of recession and excess capacity has up to a third of the city's hotels in danger of going under in the coming years, reports Berlingske Tidende newspaper.
In addition, half of the 422 hotels reviewed by credit analysis firm Soliditet for the newspaper posted a loss in their last fiscal year.
According to Soliditet, 102 hotels are not creditworthy, while another 54 should only receive credit if they can post collateral.
'When we advise against giving credit, it is because it is highly likely that the company won't exist under its current ownership within 12 months,' said Soliditet's Claus Allerup.
As the recession has eaten away at the number of business travellers and tourists in Copenhagen, a major boom in hotel construction has resulted in a glut of vacancies. In Copenhagen alone some 3,100 new rooms are set to be built by 2011.
After a banner year in 2009 that saw a number of major conferences, hotels are looking a number of lean years, according to Allerup, who predicted a 'bloodbath' was on the way.
According to one analysis, hotel turnover fell 20 percent between the first quarter of 2008 and the first quarter of 2009.
'A turnaround for hotel finances will happen later than most other industries,' Allerup said.
Jens Zimmer Hansen, of hotel and restaurant lobby group Horesta, confirmed that hotels were facing a difficult period. He said the organisation expected members to go bankrupt, but gave no specific prediction for how many.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
