Barcelo to quit UK, owner of hotels to revive Paramount Hotels brand

03-Apr-2012 - Last updated on 26-Apr-2021 at 18:34 GMT

Related tags Hotel

The Majestic in Harrogate - one of the hotels managed by Barceló in the UK that will be returned to Puma Hotels following the termination of the lease

Spanish hotel group Barceló is to quit the UK following the early termination of the leases it holds on 20 hotels across the country.

The company's decision to terminate its contract with the hotels' owner Puma Hotels on 25 April, brings with it a £20.25m penalty fee and the withdrawal of Barceló branding from the hotels, which include the Majestic Hotel in Harrogate, The Lygon Arms in Broadway and The Old Ship Hotel in Brighton.

Puma Hotels, which granted 45-year FRI leases to Barceló Group in September 2007, has appointed hotel services company Chardon Management, currently manager of 33 hotels, to help manage the Barceló hotels.

In a joint press statement, released today, the company also said it intended to revive its Paramount Hotels brand for the 20 Barceló hotels, 'as part of a strategy to focus on the strengths of its hotels in their local and regional markets.'

"It is intended that a full public re-launch of the Paramount brand will be made following the successful handover of the hotels from the Barceló Corporacion Empresarial S.A." it added.

Barceló Hotels & Resorts, which manages hotels in 17 different countries, had requested a revision of the rent for the hotels in the UK but when it was refused, it decided to terminate its contract.

In conjunction with the negotiation of the agreement with Barceló Group, Puma Hotels has also come to an agreement with its bankers Irish Bank Resolution Corporation Limited, to extend its current debt facility until the end of 2013.

The properties to be returned to Puma Hotels are: