Periquito refinances as huck resigns as MD
by Dominic Walsh
The uncertainty surrounding Periquito Hotels for the past few months appears to have been resolved - despite the resignation last week of managing director Meinhard Huck.
A refinancing deal is currently being finalised whereby the company's venture capital backers, Schroder Ventures and Electra, cede their 49% interest to the Bank of Scotland.
It was the Scottish bank, in conjunction with its British Linen Bank offshoot, that provided the debt finance when Periquito was set up in 1990 with plans for a chain of 30 hotels within five years - a strategy killed off by the recession.
The refinancing deal should put an end, at least for now, to speculation that the chain might be put into receivership or sold off. Jarvis Hotels and Pontin's chairman Trevor Hemmings were among those to have looked at the group.
Mr Huck, who leaves at the end of July to become European vice-president of Singapore-based Scotts Holdings, said last week's agreement meant Periquito would remain a separate entity, though he admitted: "Who knows what is going to happen in 12 months' time? "
Replacing him at Periquito is Carl Weldon, the company's finance and development director. He becomes the third managing director in less than a year following the departure last September of Peter Gee to Hilton International.
Mr Weldon is hoping the group can now enjoy a more settled future and build on its improved performance. Turnover in the year to the end of this month should hit £13m, with occupancy up seven percentage points on last year on a slight rise in achieved room rate.
Of the group's 10 hotels, five are directly-owned, two are owned by sister company Parrot Hotels - though these are both up for sale - and three properties are operated under management contract.
The 130-bedroom Chesford Grange Hotel near Kenilworth, Warwickshire - its oldest management contract - has also been put on the market. Agent Christie & Co is seeking offers over £6.75m on behalf of receivers Arthur Andersen.
Despite the potential loss of some of these hotels, Mr Weldon remains confident the group's strong performance will provide expansion opportunities. "The future of Periquito revolves around acquiring further hotels and management contracts," he said.
Mr Huck, meanwhile, is looking forward to joining a company with a more immediate opportunity of realising bold expansion plans.
Scotts Holdings (which is unrelated to Canada's Scott's Hospitality) has interests in shopping centres, property development and hotels and is about to embark on its second serviced apartment complex in London.
Last November it opened the Ascott Mayfair, a freehold property operating at a five-star level, and is to start developing a Palm Courtt - its four-star-standard apartment concept - at a yet-to-be-named site.
Mr Huck said his role would be to develop the group's European presence through acquisitions, joint ventures and management contracts, though hotels were "not a top priority" for the moment.
