RBS seizes control of £1bn worth of Marriott branded hotels

The Royal Bank of Scotland Group (RBS) has taken control of £1bn (US$1.64bn) worth of UK Marriott-brand hotels and appointed Ernst & Young as the receivers for the hotel owners, Professional Ventures Corporation.
 
RBS is Britain’s largest government-owned bank and has seized 42 properties managed by Marriott after the owners failed to obtain a debt-for-equity restructuring of one of its real estate loans, reported The Financial Times.
 
The properties were bought from RBS in 2007 for £1.1bn and the bank still owns around £700m of the debt, according to the FT.
 
It is known Ernst & Young is set to appoint a board of directors to run the properties and prepare a sale, while Marriott International will continue to operate the hotel under its 30-year agreement, which commenced in 2006.
 
The receiver told news agency Bloomberg: “RBS’s decision will not affect customers, suppliers or staff at the hotels.” The message coming from Marriott was business as usual as the ownership issue is decided.
 
In total, the 42 properties account for 8,000 rooms in the UK.
 
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Paul Colston

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Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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