Paul Smith Spoke to Consultancy UK About COVID-19’s Impact On the Hotel Sector

Paul Smith, Managing Director in Duff & Phelps’ Restructuring Advisory practice, recently spoke to Consultancy UK regarding key steps hotel owners can take to reduce COVID-19’s business impact. He stressed the importance of hotel owners accessing government relief to navigate this uncertain period. Additionally, he highlighted how a Time To Pay (TTP) arrangement with HMRC can be a key component to help ensure cash flow and safeguard jobs.

Paul commented: “For finance directors, support through the taxation system, grants and financial mechanisms will become crucial tools if organizations or clients are struggling to generate enough cash to meet operational costs. A well organized and structured TTP arrangement, alongside the VAT support provided, can be a key component of a successful turnaround plan that ensures cash flow and safeguards jobs.”

Paul concluded: “The hotel sector is set to face a very challenging few months, with income and revenue severely hit by the widespread travel restrictions in place, both across the UK and worldwide. The challenge now for government is the speed at which many of these schemes are implemented and rolled out, and how they reach UK businesses facing imminent cash flow difficulties. Failure to do so may mean companies may have to look at more formal insolvency options.”

Read the article here.