|42 Marriott operated hotels falls into administration.|
Monday, 20th June 2011
Source : HVS International
The holding company of 42 Marriott-operated hotels in the UK has gone into administration; receivers have now been brought in to take control of the portfolio, which comprises approximately 8,000 rooms.
The Royal Bank of Scotland was unable to restructure £700 million of debt with the hotels’ owners. The portfolio, which originally included 47 hotels, was acquired in 2007 for £1.1 billion by private equity firm Quinlan Private, Israel-based Delek Real Estate and Israeli investor Igal Ahouvi.
The hotels will continue to be operated as normal by Marriott, which holds 30-year management agreements with the properties. A spokeswoman for Marriott commented that the operation of the hotels is “entirely unaffected by these actions as is any subsequent sale to a new ownership group”.