THE LEADING PUBLICATION FOR THE HOSPITALITY SECTOR & LICENSED TRADE Issue 286
Issue 251 www.CLHNews.co.uk
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Summer Trading Helps Offset Higher Costs as Hospitality Insolvencies Fall… But Concerns Remain
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The Bowden Group Hospitality Business Mentoring since 1989
The hospitality and accommodation sector experienced a notable decline in company insolvencies during August 2025, according to statistics published today (October 17), though industry experts caution that mounting operational pressures may prevent this trend from continuing.
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Official figures reveal that insolvencies within the accommodation and food services sector decreased by 19 per cent, falling from 327 cases in July 2025 to 265 in August 2025. The August total also represents a marginal improvement on the 271 insolvencies recorded during the same month in 2024.
This welcome fall follows a devastating year for the sector which saw UK hospitality insolvencies surge by nearly 20% since January 2025 amid rising costs. The sector has experienced particularly challenging conditions: • In the first six months of 2025, 1,706 accommodation and food service companies (including hotels, restaurants and pubs) closed • July 2025 marked the first time hospitality insolvencies rose consecutively for three months since prior to January 2022
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