THE HOTELS OF TURKEY ARE MASSIVELY GOING BANKRUPT

Turkish hoteliers began to massively sell off their businesses - experts note that the number of advertisements for the sale of hotels began to grow exponentially. Special websites and real estate agencies are overwhelmed with interesting offers, and the reason for such a behavior of the owners was the drop in demand from foreign guests, for the needs of whom the most of the hotel complexes were built.

Hotel owners cannot maintain apartments in a period of pandemic. Analysts point out that hospitality services are going through a period of acute crisis in Turkey, which could result in a complete collapse of the hotel industry.

Unprofitable real estate can seriously fall in price and change owners.

The brunt of the COVID-19 pandemic fell on business owners who decided to renovate or expand their market presence in 2020. For these purposes, many, as a rule, took out the loans that turned out to be impossible to repay. The heavily curtailed tourist season brought losses, making the business owners dependent on the creditor banks.

Earlier, the experts from Euler Hermes Company, operating in the German insurance market, have assessed the potential bankruptcy of the global companies. According to them, the rate of bankruptcy in the hotel business of Turkey may well exceed the global one - 36% of entrepreneurs working with foreign tourists might face bankruptcy.

The Turkish sources note that not only small, but also large hotels, located in profitable recreation areas, are being sold.

For example, one of the ads offers to purchase a certified hotel in Alanya located close to the famous Cleopatra Beach for $ 35 million. In this case, in fact, we are not talking about the sale of buildings, but of the entire business, since each of the hotels has its own customer base and transport services.

As the high tourist season is already ending, many hoteliers are scrambling to divest their assets before the preparations to welcome tourists next year begin. But the question of whether there will be any tourism at all in the next few years remains open.