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The Real Hotel Group collapses into administration

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The Real Hotel Group collapses into administration
Written by:

Purple hotels operator The Real Hotel Group (RHG) has gone into administration.

The company, which was forced to suspend its shares from the Alternative Investment Market on 13 January, said in a statement that it had been exploring the options available to the business in “the light of its adverse financial position”.

“It is with deep regret that the board has appointed administrators in respect of its trading subsidiary, the Real Hotel Company”.

Shay Bannon and Antony Nygate of BDO Stoy Hayward have been appointed as administrators for the hotel company.

In the year to 1 January 2009, RHG saw a 7% decline in revenue from continuing operations from £68m to £63m, as the company’s usually lucrative function business took a hit as corporate events and Christmas parties were cancelled due to the economic slowdown.


Hotel industry has to brace itself for a rough year >>

Real Hotel Group has shares suspended from AIM >>

Real Hotel Group in crisis talks with lenders as sales slump >>

A grim outlook for hospitality as insolvencies rise by 95% in two years >>

Real Hotel Company boss says business as usual despite share fall >>

Real Hotel Company launches first Purple hotel in Scotland >>

 

By Chris Druce

 

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