Golden Tulip Hospitality Group has announced this week that it is to go into voluntary receivership, owing to a decline in occupancy rates and the cost of investing in new hotels.
Golden Tulip comprises of over 780 hotels across more than 50 countries. It owns 60 of those hotels with the remainder under management or franchise deals.
A spokesman for the group said declining occupancy rates and the cost of investing in new hotels had led to losses and that it had filed for protection from its creditors.
According to Golden Tulip, "The general decline in the leisure and hospitality sector due to the recession, have also had their impact on Golden Tulip, especially outside the Netherlands and Belgium the occupancies have declined substantially in the last three quarters."
Golden Tulip is in discussions for a possible merger with Apollo Hotels & Resorts and private equity firm H2 Equity Partners.
Golden Tulip's operations and its franchises will not be affected by the receivership.
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