Restover Lodge Hotels, which operates three budget inns, has entered administration.
The company has three hotels in its portfolio, in Rotherham, Doncaster and Peterborough and offers rooms starting at £23 per night.
The firm called in administrators from Moorfields Corporate Recovery last week.
Simon Thomas and Shelley Bullman, corporate recovery specialists at Moorfields, have been appointed to deal with the business.
Moorfields said it would continue to trade the hotels to maintain their business and protect value whilst they are marketed for sale. All employees have been retained.