1,200 jobs saved as Folio Hotels emerges from administration
Sunday, 12 Jan, 2009
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Folio Hotels pledged to continue working with hotel booking agents after a management buy-out of 18 former Folio hotels, bought the company out of administration.
The deal is expected to save 1,200 jobs in the 18 hotels around the country.
Folio was forced into administration last month due to bad timing between the completion of an extensive refurbishment programme and the beginning of the current recessionary environment together with rents which were negotiated at the height of the market, according to the company.
Long term plans to ride the storm through renegotiated rents were dashed when talks failed to reach a satisfactory conclusion within the time scales availableand as a result the management team had to call in the administrators.
The new company called Mulbourn Limited will continue to trade under the Folio Hotels banner with funding provided by the hotel’s landlords, the management team and private equity.
It will be led by managing director Matthew Welbourn and finance director Alan Murray, who held similar roles in the previous company. Thirteen former senior managers will also take a stake in the new company.
The new company is forecasting a turnover of £48 million in its first year of trading.
Established in 2005 with five hotels, Folio had a portfolio of 36 hotels by the end of last year.
Sales director Nick Greaves said: “This is the start of a positive new chapter for Folio Hotels. It is very much business as usual and we are keen to build our relationships with hotel bookings agents and travel management companies. We will be honouring all our existing bookings and will continue to maintain commission at previous levels.”
Greaves said the company had gained the ‘cream’ of the properties in the portfolio. Not only were they in great locations but they had also recently been refurbished to the tune of £35 million.
“We are keen to continue doing business with the industry. Trading conditions will be tough over the next few months however we believe we are well poised with an excellent product and an ability to reach deals”, he added.
The hotels which form part of the deal are:
Barns Hotel, Bedford; Brownsover Hall, Rugby; Charlecote Pheasant, Stratford-upon-Avon; Durley Dean, Bournemouth; Etrop Grange, Manchester Airport; Hall Garth Country Club, Darlington; Harpenden House, Hertfordshire; Harte & Garter Hotel & Spa, Windsor; Maids Head Hotel, Norwich; Princess on Portland, Manchester; Yorkshire Hotel, Harrogate; Highfield House, Southampton; Richmond Gate and Richmond Hill Hotels, Richmond-Upon-Thames; Buckerell Lodge, Exeter; Ballachulish and Isles of Glencoe hotels, Argyll and the Caledonian Hotel Oban.
Thirteen hotels that form part of the former Folio portfolio are to be managed by Bespoke Hotels, a separate company.
by Phil Davies
Phil Davies
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