Legacy Hotels confirms interest in Folio takeover
Legacy Hotels and Resorts has confirmed an interest in taking over several properties from Folio Hotels after the group's collapse into administration.
Folio called in the administrators because of a sharp decline in trading. The Swindon-based company, which has 36 hotels throughout the UK and a turnover of about £70m, blamed high rents and an expensive refurbishment programme for its cash flow problems.
Folio, set up in 2004, by the former managing director of Corus Hotels and Martyn Levitt, the former finance director of Firmdale Hotels, had been in discussions with its landlords over a rent holiday to allow it to continue trading.
However, a decision by the owner of nine hotels to pull out of negotiations is said to have prompted the move to appoint MCR.
Today, Andy Townsend, chief executive of Legacy Hotels, confirmed his company was in touch with Folio about taking over some of their properties.
"We are in contact with the owners of several Folio hotels and are keen to explore further the possibility of taking on some of the properties," he said.
Legacy Hotels and Resorts currently operates and manages 10 Legacy hotels and has seven associate hotels where it looks after sales, marketing and distribution.
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By Kerstin KÁ¼hn
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