Administrators take over 42 Marriott hotels

By Lorraine Heller

- Last updated on GMT

Related tags: Marriott international, Hotel chains

London Marriott Hotel County Hall is amongst 42 Marriott hotels in administration
London Marriott Hotel County Hall is amongst 42 Marriott hotels in administration
Marriott Hotels around the country have been taken into administrative receivership after their owners failed to make loan repayments.

The Royal Bank of Scotland, which was the majority lender on the debt, took control of the £1bn property portfolio when debt-for-equity restructuring payments were not met.

RBS this week appointed Ernst & Young as administrative receivers to the 42 hotels. With around 8,000 rooms across the portfolio, this is thought to be one of RBS’ largest individual real estate receiverships.

Business as usual

All 42 properties will continue to be operated by Marriott during the administration process, and no change is expected in any level of the business of the hotels, said Ernst & Young.

“It is business as usual for the portfolio. Marriott will continue to operate the hotels and this decision will not affect customers, suppliers or employees of the hotels.”

Background

RBS bought the four- and five-star hotels in 2006 for £951m from a Whitbread/Marriott joint venture.

It then sold them off for £1.1bn in 2007 (retaining around £700m of the debt used to finance the acquisition) to Quinlan Private, Igal Ahouvi and Delek Real Estate, who own the British Virgin Islands-based Professional Ventures Corporation (PVC).

When PVC, the holding company for the portfolio of hotels, was unable to pay its loan interest, Ernst & Young was on Tuesday appointed administrative receiver.

Sale of Marriott hotels

Ernst & Young will now look to sell the portfolio of hotels, located in England, Scotland and Wales, with the aim of recovering as much of the debt as possible.

A new board has been appointed to run the property companies under PVC that own the individual hotels, and this board will be advised by Earnst & Young on the “potential sale”.

Marriott, which still has 25-years left on a 30-year management contract it had signed on the hotels in 2006, will in all likelihood continue to operate the hotels even after a potential sale, Ernst & Young told BigHospitality.

The hotels are:

  • Aberdeen Marriott Hotel
  • Birmingham Marriott Hotel
  • Bournemouth Highcliff Marriott Hotel
  • Cardiff Marriott Hotel
  • Edinburgh Marriott Hotel
  • Newcastle Marriott Hotel Gosforth Park
  • London Marriott Hotel Kensington
  • Liverpool Marriott Hotel City Centre
  • London Heathrow Marriott Hotel
  • Manchester Airport Marriott Hotel
  • Newcastle Marriott Hotel Metro Centre
  • Peterborough Marriott Hotel
  • Portsmouth Marriott Hotel
  • Sunderland Marriott Hotel
  • Swansea Marriott Hotel
  • Swindon Marriott Hotel
  • Waltham Abbey Marriott Hotel
  • York Marriott Hotel
  • Bexleyheath Marriott Hotel
  • Bristol Marriott Hotel City Centre
  • Bristol Royal Marriott Hotel
  • London Marriott Hotel County Hall
  • Durham Marriott Hotel Royal County
  • Glasgow Marriott Hotel
  • Huntingdon Marriott Hotel
  • Leeds Marriott Hotel
  • London Marriott Hotel Maida Vale
  • London Marriott Hotel Marble Arch
  • Northampton Marriott Hotel
  • Preston Marriott Hotel
  • London Marriott Hotel Regents Park
  • Heathrow / Windsor Marriott Hotel
  • Marriott Breadshall Priory Hotel & Country Club
  • Marriott Dalmahoy Hotel & Country Club
  • Marriott Forest of Arden Hotel & Country Club
  • Marriott Hollins Hall Hotel & Country Club
  • Marriott Meon Valley Hotel & Country Club
  • Marriott St. Pierre Hotel & Country Club
  • Marriott Sprowston Manor Hotel & Country Club
  • Marriott Tudor Park Hotel & Country Club
  • Marriott Worsley Park Hotel & Country Club
  • Leicester Marriott Hotel

Related topics: Business, Hotels

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2 comments

@Andrew Preston

Posted by Emma Eversham,

Andrew,

Looking at the list of hotels listed in our article, the Marriott Hollins Hall HOtel is included. However, the article also states that the administration will not affect customers.
The administrators say that 'no change is expected in any level of the business'and that Marriott will continue to operate their businesses as normal.

This is not Marriott's website however, so I would advise you to contact the hotel directly if you have any concerns, or perhaps someone from the hotel could contact you about this if they read it.

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deposits paid

Posted by andrew preston,

dear sirs/madam
i recently paid a deposit for my daughters wedding,which was planned for 10/08/2012 @Marriott Hollins Hall Hotel. as you can imagine my concern after reading this. please can someone confirm to me wether the above hotel is included in this,and if so would i be able to get a refund of said deposit.
regards A Preston

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