Brompton Hotels - the leaseholder of eight hotels across the UK - has gone into administration.
Andrew Andronikou and Peter Kubik of UHY Hacker Young were appointed as joint administrators on 4 January.
The hotels, which were managed by Brook Hotels, continue to operate as normal through a new management company called Delight Hotels.
The eight hotels are the Chimney House hotel, Crewe; Honiley Court hotel, near Warwick; Madison hotel, Swindon; Queensferry Hotel, Fife; Redwood Hotel & Country Club, Bristol; Tewkesbury Park Hotel, Tewkesbury; Waterloo Hotel, Bracknell; and Westfield House Hotel, Blaby Leicestershire. The freehold of all the properties is owned by Mountain Capital.
Ashok Ummat, one of three directors of Brompton Hotels with Denise Ummat and Umesh Ummat, said that the company had suffered as a result of high fixed cost and a fall in turnover. "They became no longer sustainable and the difficult decision to place the business into administration was taken," he added.
The leases for the eight hotels are now to be marketed through Edward Symmons.
Brook Hotels continues to operate five hotels.
By Janet Harmer
E-mail your comments to Janet Harmer here.
Looking for a new job? Find your next job here with Catererandhotelkeeper.com jobs