Spanish hotel company Barceló Hotels and Resorts is set to withdraw from the UK and pay a £20m penalty to terminate its leases to run a group of 21 UK regional hotels owned by Puma Hotels, including the Lygon Arms in Worcestershire, The Imperial in Torquay, The Majestic in Harrogate and the Hinckley Island Hotel in Leicestershire.
Barcelo had asked for a reduction in rent it paid for the properties, in view of a fall in business during the recession.
Barceló had signed a 45-year lease to run the 21 hotels in 2007.
The early termination of the leases will be triggered on 25 April 2012. Prior to the grant of the leases in 2007, Puma Hotels itself operated the hotels through its head office in Hinckley and that will again transfer back to Puma. Puma, in which the AIM-listed Hotel Corporation has a 49.9 per cent stake, will revive the old Paramount Hotels brand.
Puma Hotels also reports it has negotiated an agreement with its bankers to extend its debt facility until 31 December 2013.
Puma Hotels has appointed Chardon Management to assist in management of the hotels. Chardon manages 33 hotels across the UK.
Shore Capital will continue to provide asset management to Puma Hotels.
The group, founded by Chairman Howard Shore, said 4 April, it had taken a £4.8mloss on its five per cent Puma Hotels holding.
Tough recent months for hotels have seen the administration of Professional Ventures Corporation, the holding company for 42 hotels operated by Marriott Hotels International, and Jarvis Hotels, whose 24 hotels have been transferred to the ownership of new company Jupiter Hotels.
Do you have news for CN? Email: email@example.com