Debt Pressures Mount for Europe's Biggest Holiday Home Business

According to a report published in June 2025, Europe's largest holiday home business, Awaze, is facing significant financial challenges. S&P Global, the credit rating agency, has warned that Awaze's finances are on an "unsustainable" path as debt pressures mount.

The warning comes as Awaze's debt to earnings ratio soared to more than 13 last year, up from 6.4 in 2023. S&P Global attributed this sharp increase to soaring inflation, growing competition, and weaker-than-expected bookings across Awaze's portfolio of vacation rentals and resorts.

Awaze, which owns popular brands like Cottages.com and Hoseasons, manages over 90,000 holiday properties across 36 countries. The company has been urged to take immediate action to cut costs and boost occupancy rates at its sites in order to demonstrate a "trend of improving the quality of its earnings." Failure to do so could result in a credit rating downgrade, the agency threatened.

Despite the financial concerns, Awaze's liquidity position remains "adequate," with the company citing a fully undrawn credit facility and a sound cash balance. However, the warning comes at a crucial time, just weeks before the start of the busy summer holiday season.

The challenges facing Awaze reflect the increasingly competitive landscape in the European holiday market. Last year, major hotel chains like Marriott and Hyatt unveiled expansion plans to cater to the growing demand for luxury all-inclusive trips, particularly from American travelers.