Virgin's bombshell leaves consortium members stunned

HOTELS owned and marketed by the Virgin Hotel Collection are reeling from the news that the group is planning to sell the properties it owns and dissolve its marketing consortium.

Virgin has sent a letter signed by managing director Michael Herriot to the seven hotels it owns and the 20 it markets in the UK.

Peter Pinkster, owner of the 15-bedroom Bridge House Hotel in Beaminster, Dorset, which has been marketed by Virgin for four years, described the news as "a bolt out of the blue".

He said: "Virgin had a meeting in Derby last month for its members. They told us about their future plans and then suddenly we got this letter. I am dumbfounded. I suppose we will have to see if there is another consortium we can join."

Another hotel, which askedto remain anonymous, said:"We were quite amazed. Virgin's head office doesn't even seem to know who the hotels are being sold off to."

The letter read: "I am writing to let you know that Virgin is proposing to sell the seven hotels it owns in the UK." It continued: "The marketing consortiumwill cease to exist as from 31 December 1999. May I take this opportunity of thanking you for being part of the Virgin Hotel Collection."

Rumours suggest Virgin could be planning to sell to a Scottish hotel group. Herriot was in Scotland and unavailable for comment.

Virgin is understood to be keeping four overseas hotels in Majorca, Italy and Morocco.

by Louise Bozec