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Spain's Hotel Industry: High Failure Rates Despite Appeal for Entrepreneurs

The hotel industry in Spain may seem like an easy entry point, but it's one of the toughest sectors to succeed in. High customer expectations and a grim survival rate make it a challenging sector, even for prominent individuals.

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1 min read
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is...
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is placed. On table, we see plates, fork, spoon, glass, branches of tree. Around the table, we see chairs and behind that we see the other table which is like green in color and behind that, we see a man wearing black blazer. Next to him, we see the girl standing and behind them, we see door on which exit is written on it and behind that door, we see two men standing.

Spain's Hotel Industry: High Failure Rates Despite Appeal for Entrepreneurs

The hotel industry in Spain faces significant challenges, despite its appeal for new entrepreneurs. A high mortality rate and demanding customers make it one of the toughest sectors to succeed in, even for those with substantial economic power.

Data from the National Institute of Statistics (INE) reveals a grim picture: only 75% of hotel businesses survive their first year, with a quarter closing within the first 12 months. This trend continues, with almost half of the establishments disappearing after three years, making it one of the sectors with the highest business mortality rate in Spain.

The industry's allure lies in its seemingly simple entry barriers, attracting many new business owners. However, José Elías, CEO of Audax, warns that the hotel industry is one of the most demanding sectors. Customer expectations are often disproportionately high, with a strong focus on perfect service. Even prominent individuals with great economic capacity have struggled, with footballers opening restaurants and losing their entire capital. Despite extensive searches, specific details about such failed news remain scarce.

The hotel industry in Spain, while attractive to new business owners, presents significant challenges. High business mortality rates and demanding customers make it a tough sector to succeed in, even for those with substantial resources. Despite the lack of specific details about prominent individuals' failed news, the industry's demanding nature is clear.

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