Crisis in the hospitality industry: Every ninth business in MV is fighting for survival!

Crisis in the hospitality industry: Every ninth business in MV is fighting for survival!

The situation in the hospitality industry in Mecklenburg-Western Pomerania has worsened significantly in 2024. A new report from Top hotel shows that one in nine insolvencies occurs in this sector. Despite the challenges posed by capacity restrictions and forced closures during the Corona crisis, many restaurants and hotels have tried to assert themselves. Last year, the number of corporate bankruptcies in Mecklenburg-Western Pomerania rose by 7.5 percent to 273 applications. Creditors' claims amounted to an impressive 226 million euros, an increase of 10.7 percent.

Accommodation companies, including hotels and guesthouses, are particularly hard hit. There were 32 insolvency proceedings initiated in the hospitality industry, an alarming increase of 52 percent compared to the previous year (21 proceedings). The president of the hotel and restaurant association (Dehoga) in MV, Lars Schwarz, describes the numbers as worrying. “We also need to consider the countless operational tasks that will go unaccounted for when operators’ reserves are depleted,” he explains.

A look at the numbers

A closer look at the developments shows how serious the situation is: in 2022, only eleven insolvency proceedings were registered in the hospitality industry, which shows how dramatically the situation has changed. The first months of 2025 in particular are putting companies under pressure, as restaurant sales are still around 18 percent below pre-pandemic levels. Lars Schwarz also points out the rising costs for energy, food and personnel, which are putting the existence of many companies at risk.

The forecasts of the credit agency Creditreform for 2025 indicate a similar development of insolvencies nationwide. In Mecklenburg-Western Pomerania, however, the worries of innkeepers can represent a small ray of hope due to the announced reduction in VAT for food in restaurants from 19 to 7 percent.

The change in the corporate landscape

The business advertisements also show a dramatic change. In 2024, 12,659 business registrations were recorded against 12,892 business deregistrations, reflecting the uncertain economic situation in the region. In comparison, the 2023 numbers were even more significantly in the red with 124,810 registrations and 137,686 deregistrations. All of this shows that the regional economy is affected by profound turbulence and that many companies are in a serious fight for survival.

The reports of bankruptcies that leave no breeze of positive change continue. In October 2024, among other things, the D.I.V.E. GmbH from Schwerin went bankrupt, followed by numerous other companies from various industries that were also unable to withstand the economic challenges, such as infobroker reported.

In summary, many companies in Mecklenburg-Western Pomerania, especially in the hospitality industry, are facing enormous challenges. The next few months could be crucial in determining whether they stabilize or have to accept further operational closures. It appears that the sector will not only have to deal with the aftermath of the pandemic, but also quickly adapt to the current economic realities. Hopes now rest on the impending tax relief and an early increase in sales.