The Real Hotel Company has closed four of its UK hotels, making 150 people redundant after the company became the latest hospitality business to call in administrators this week.
After experiencing ‘deterioration in trading’ during the last quarter of 2008, the Real Hotel Company called in administrators BDO Stoy Hayward, who have closed four UK hotels with immediate effect.
While the Comfort Inn in Thetford, the Quality hotel in Newcastle-Upon-Tyne, the Stop Inn ‘Floatel’ in Northwich, and the Stop Inn in Newcastle-Under-Lyme have all now closed, the remaining hotels in the group, which include 11 Purple Hotels, four Stop Inns, 19 Quality Hotels and two Clarion Hotels, will all continue to trade as normal.
Shay Bannon, business restructuring partner at BDO Stoy Hayward, said the lack of trade at the Real Hotel Company ‘accelerated’ in January, causing ‘severe cash flow pressures’.
“It is regrettable that we have had to close a small number of hotels but we continue to trade a significant number of hotels with the support of stakeholders and will be actively marketing the Group for sale, We have already received several expressions of interest and are confident of a successful outcome which will save a significant number of jobs.”
The Real Hotel Company currently operates over 50 hotels across Europe, with 40 in the UK, employing over 1,200 members of staff.