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Compass Hotels take over RHC contracts

19 March 2009 by
Compass Hotels take over RHC contracts

Compass Hotels Management Services has taken over the management contracts of four former The Real Hotel Company properties.

The company, which is a subsidiary of Compass Hotels, has been employed by the owners of the properties as a result of the Real Hotel Company collapsing into administration in January.

The four properties are the Quality Hotel, Loughborough, which has been renamed The Compass Hotel; the Quality Hotel in Walsall, which has also been rebranded as Compass Hotel Warsall; and both the Stop Inn Southcrest Hotel Redditch and the Stop Inn Scotch Corner, which have had Stop Inn removed from their names.

Julian Tee, chief executive of Compass Hotels, said his main priority was to "stabilise the operations" and increase sales.

"We have a lot of experience in this area and our main priority is to quickly stabilise the operations, re-establish links to key third party intermediaries to increase sales and manage the hotels to the high standards that have helped us grow our other hotels over the past 25 years," he said.

"We're very conscious of the uncertainty that the teams will have faced over recent weeks and we hope to be able to allay any fears over job security. Trading conditions are tough for hoteliers at the moment but we're certain that business levels will pick up in time and confidence will be restored in the market."

Compass Hotels is one of the specialist hotel management partners working with InnFutures, Best Western's new rapid reaction management service aimed at turning around problem hotels quickly.

Third party management increasing as hospitality failures rise >>

Focus Hotels safeguards 500 Real Hotel Group jobs >>

Hotel insolvencies double; worse to come >>

150 jobs lost as Real Hotel Group closes four hotels >>

The Real Hotel Group collapses into administration >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

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