A report on Friday has found out that since the credit crunch started two years ago the real estate and construction companies have been hit the worse by the global downturn.

1573 companies when bust in the second quarter of 2007 when compared to 696 in the third quarter of the same year.

24 per cent of the insolvencies have been made up of developers, investors and agencies. With the downturn the hotel industry has also been affected as banks don’t want to lend money to help companies out.

Despite the rise of the ’staycation’ UK hotel groups are going under at a faster rate than ever … banks are understandably reluctant to lend to companies whose underlying assets are based on property a comment by Anthony Cork.