6.000 licensed premises have been lost for good last year

Tuesday, January 26, 2021

The wave of hotel closures by 2020 is devastating, a study has found.

This would be a 5.1 per cent market contraction from late 2019 and a 175 per cent increase from a drop in 2,171 sites so far this year.

The 2020 economic turmoil resulted in an all-time closure of 9.930 sites, with just 3,955 opening for the first time - meaning 2.5 closures were made to every new opening in the market last year - almost twice as much as the 1.3 in 2019.

The Market Recovery Monitor measures the extent of damage the pandemic has caused the hospitality industry and predicts that many more closures will be in place in 2021.

The figures fell between 3.9% and 5.1% for community services, food and the High Street pub sector.

"Our report takes stock of the huge damage wreaked by the pandemic on the licensed sector in 2020," said Karl Chessell, CGA Operations Manager Hospitality and Groceries, EMEA.

Emma McClarkin, CEO of the British Beer & Pub Association, said: "These figures show what a devastating year 2020 was for pubs. Our sector is far from out the woods yet though and it continues to fight for its very survival through the pandemic in 2021. We fear things could actually get much worse before they get better for our pubs and brewers.

UK Hospitality Kate Nicholls said: "The loss of 6.000 premises is a dreadful blow to this country's hospitality sector, but it is going to be the tip of the iceberg if we continue on our current course.