Hospitality insolvencies in Ireland: A 2025 overview

The hospitality sector in Ireland has faced significant challenges over the past few years, with insolvency rates reflecting the industry's ongoing struggles. Despite a general downward trend in overall insolvencies[1], the hospitality sector remains particularly vulnerable.

Current trends

Irish hospitality businesses in 2025 are grappling with rising operational costs, staff shortages, evolving consumer preferences, and adapting to new technologies. Certain types of businesses are more vulnerable than others, and we can see areas such as coffee shops coming under increasing pressure. It’s also evident that food trends are evolving such as quick service restaurants (QSRs) and as certain cuisines become more popular, this erodes business from more traditional offerings. Instagram and TikTok trends are also leading the way in marketing according to Bord Bia.

For regional hotels of low-scale business, there is clear and certain pressure. Some regional hotels have low room numbers, which are a key driver of margin in the hospitality business. This, coupled with a declining food and beverage trade, is putting pressure on the business, compounded by underlying running costs and debt which will struggle to be serviced.

In 2024, hospitality accounted for 17% of all insolvencies, with 110 recorded cases[2]. The key factors driving this are utilities, labour and general cost inflation. With Revenue now taking a more active role in recovering legacy debts, there will be even more pressure on smaller hospitality businesses.

Future outlook

While the overall trend in insolvencies is downward, the hospitality sector's outlook remains uncertain. The persistence of relatively higher level of hospitality insolvency rates suggests that many businesses are still in a precarious position. Efforts to stabilise the sector will need to focus on managing costs, improving cash flow, and possibly restructuring debt.

In conclusion, while Ireland's hospitality sector continues to face significant challenges, understanding the factors at play can help stakeholders develop strategies to support and stabilise this vital part of the economy. With the evolving world of tariffs, overseas visitor numbers may decrease, which will compound issues.

Lenders will need to consider insolvency remedies in hospitality positions to protect their interests. Early engagement with a professional advisor is key; the earlier you engage, the more options you have. For more information on this and other topics, contact our specialist advisors today.