Credit to the hotel industry grows 27% and an increase in non-performing loans is expected

This sector represents 6% of the total loan portfolio granted to productive activities.

An employee of the hospitality industry.

Credit to companies in the hospitality subsector stood at over 34.1 billion euros in June, which represents an increase of 27% compared to the same month of the previous year, which represents an increase of cerca of 7.2 billion euros, according to the analysis prepared by the consulting firm AIS Group.

Specific, bars and restaurants are being one of the sectors most affected by the coronavirus health crisis, since they are suffering activity stoppages and capacity limitations that have endangered the continuity of many of them.

“That is why the hospitality industry has massively resorted to credit. In the balance of the loan portfolio to companies in this sector, it is observed that between June 2019 and June 2020 an increase of 7,242 million euros (7,163 million of them only in the first half of 2020). A rate of 27%, which is twice as long as that of commercial companies, the second highest, which in the same period stood at 11.7% ”, explained José Manuel Aguirre, economist and commercial director of AIS Group .

According to the latest published data, the hospitality industry represents 6% of the total loan portfolio granted to productive activities, which stands at 584,060 million euros and, within the services sector, represents 8%.

The AIS Group analysis classified 5.3% of the loan portfolio to hotel companies as doubtful as of June 2020, leaving a total of 1,808 million euros, although the trend was still downward.

However, according to Aguirre, the enormous growth of credit in this sector is foreseeable that it will cause a “notable increase” in delinquencies, as well as a wave of defaults that will arrive in a few months.