Four weeks after calling in administrators, Folio Hotels will this week secure a deal with Bespoke Hotels that will save up to 2,000 jobs across the company.
Folio, whose portfolio covers 36 hotels across the UK, will hand over 13 properties (nine of which belong to the Landesburg and Rosenburg families, with a further three owned by the Reuben brothers), to Bespoke who will takeover the management contracts. The remaining 23 hotels will be run by Folio`s existing management team.
Despite Folio making 20 head office staff redundant just a week before Christmas, a spokesperson for administrators MCR said the deal was a ‘great success story at a difficult time of year’, and confirmed Folio’s management are now also in talks to acquire the Folio brand and remaining hotels, which include the Richmond Hill and Richmond Gate hotels in London.
Founded in 2005, the Folio Hotel group ran into financial difficulty towards the end of last year, and while it operated with a turnover of £70m, harsh trading conditions combined with an extensive refurbishment project and rental responsibilities forced Folio to call in administrators in December.