Duff & Phelps, the premier global valuation and corporate finance advisor, have completed the financial restructuring of UK Group of Hotels Plc (“the Group”) and its subsidiaries on 11 September 2014.
UK Group of Hotels Plc was placed into administration on 4 August 2014 to assist the restructuring of banking facilities. During the process it became apparent that the subsidiary companies of the Group were burdened with debt they could not service and placing them into administration was felt to be the best option to assure the long term success of the hotels.
Continuing to trade as The Hotel Collection
The business and assets of the subsidiary companies in administration were subsequently sold, but will continue to trade as The Hotel Collection, with no change to the existing services on offer to the public. As a result of the restructuring, The Hotel Collection in its new corporate structure is now positioned to commence reinvestment in existing assets and explore strategic growth opportunities under the newly strengthened leadership team.
Stronger position
Paul Williams, Managing Director of Duff & Phelps commented, “UK Group of Hotels plc and its subsidiaries underwent a very successful financial restructuring process, which leaves The Hotel Collection in a stronger position to carry its business into the future.
“We are pleased that during the process all subsidiaries carried on trading as normal, retaining jobs for all of the 2,200 staff and preserving ongoing business for all suppliers, both nationally and locally. All bookings and deposits will be honoured and customer service will be unaffected by the financial restructuring.
“The Hotel Collection under its new corporate structure continues to enjoy the support of its lender and the enhanced management team and securer financial position will secure growth in revenue and market share for the company.”
Grant Hearn appointed Chairman
The Hotel Collection has announced the appointment of Grant Hearn as Chairman. Grant, the former Chief Executive of hotel group, Travelodge, assumes his role on 15 September 2014. He joins the company following its financial restructuring as it positions itself for investment and growth.
Grant brings a wealth of hospitality experience to his new role at The Hotel Collection, which operates 21 unique properties across the UK, having led Travelodge for eleven years, as well as senior roles within Hilton Hotels and Whitbread.
Invest and build the portfolio
Commenting on his appointment, Grant said: “The Hotel Collection has a fantastic portfolio of properties across the UK and I am thrilled to be joining them at this pivotal time. Fredrik and his team have done a great job in improving the performance of the Company and now everyone is ready to take it to the next level as we invest in and build the portfolio.”
Fredrik Korallus, Chief Executive of The Hotel Collection commented: “Grant’s appointment as chairman will further strengthen our board and support our growth ambitions following 18 months of sustained growth in revenue, profit and market share. It’s great that we are now in a position to invest further in our assets and staff as we grow the business.”
About The Hotel Collection
The Hotel Collection offers 21 unique properties across the UK from Scotland to Devon. They are located in inspiring locations from vibrant city and town centres, spectacular coastal resorts to countryside retreats and include The Carlton Hotel in Edinburgh, The Oxford Hotel in Oxford, The Walton Hall and Hotel in Warwickshire (pictured top) and The Hinckley Island Hotel with conference facilities for up to 700 delegates. The Hotel Collection offers a total of over 2,800 bedrooms, 220 meeting rooms and extensive leisure facilities.
For more information about The Hotel Collection click here
About Duff & Phelps
Duff & Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute consulting, M&A and restructuring. The firm’s more than 1,000 employees serve a diverse range of clients from offices in North America, Europe and Asia.
For more information about Duff & Phelps click here
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