UK Marriott hotels being sold

Hotel News - 20/06/2011

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Administrators have been hired to seek potential buyers for 42 hotels in the UK under the Marriott brand. The hotels, however, will continue to operate as normal while the search for a suitor is underway.

Ernst & Young, the firm brought in a bid to find a new owner for the hotels, insists it will be ‘business as usual’ at the hotels and that there will be no major changes to the way they are run. The hotels being offered for sale include the Metrocentre property in Gateshead and the Gosforth Park complex in Newcastle.

Ernst & Young has been appointed as receivers for Professional Ventures Corporation, which owns the property portfolio. The receivers were hired by the Royal Bank of Scotland after it took over the properties earlier this week.

Roy Bailey and Alan Bloom were brought in to handle the administration. Bailey says that Marriott will continue to run the hotels. He adds that the decision to seek a new owner will not have any effect on the hotels’ customers, staff or suppliers.

Professional Ventures Corporation, which is based in the British Virgin Islands, is the holding company for a group that owns the hotels. The ownership is split between Delek Real Estation, Quinlan Private and Blenheim Property Group, amongst others.

Royal Bank of Scotland in 2007 sold the hotels in a deal then worth £1.1 billion. The new owners, however, used financing worth up to £900 million to finance the deal.

Royal Bank of Scotland provided some £700 million of the financing. York Capital now owns another loan involved in the deal that was originally provided by Lehman Brothers.

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