Empty hotels only have unwelcome debt as a guest
To avoid defaulting on their debts, hotel groups will need to go cap in hand to banks
28 June 2020 - 00:28
The coronavirus pandemic has hammered the whole travel industry, but SA's highly geared hotel chains have been particularly hard hit by having to close their properties during the lockdown.
Analyst Anthony Clark predicts a grim future for the hotel groups, noting that they have incurred billions of rands in debt - through buying assets or making additions to existing properties - which they now need to service with almost no cash flow...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.