Subsidiary of Akkeron Hotels Group goes into administration with loss of jobs
Akkeron Hotels Ltd, which once operated eight leasehold properties and was a subsidiary company of the Akkeron Hotels Group, has gone into administration with the loss of at least 11 jobs.
The company changed its name to Rosford Management Ltd on 17 February before then going into administration.
Colin Johnston, owner of Freedom Hotels, said that Crieff Hydro would help to stabilise the hotels. "This is about the long-term for me and for Crieff Hydro. In time, I am sure that the teams in the hotels, the customers, Crieff Hydro and myself will all feel really proud to be part of this story."
Meanwhile the management of the other four hotels once operated by Akkeron Hotels - Harte & Garter, Windsor; Richmond Gate, Windsor; Buckerell Lodge, Exeter (all four-star); and the three-star Makeney Hall, Belper, Derbyshire - have been transferred to a new subsidiary of the Akkeron Hotels Group, Suite Hospitality Ltd.
Matthew Welbourn, who was managing director of Akkeron Hotels and is now managing director of Suite Hospitality, said that the administration had taken place following the advice of legal advisors.
He was unable to confirm the exact number of redundancies, but said he regretted the job losses.
"The administration is part of a corporate restructure and we are now consolidating the business before considering adding further hotels."
Welbourne went on to say that all four hotels within Akkeron Hotels are in "great" locations and the properties in Exeter and Belper will benefit from forthcoming refurbishments.
Akkeron Hotels Group is the holding company for a group of businesses which manage 10 regional leasehold and freehold hotels, in addition to the four hotels now operated by Suite Hospitality.
In its last financial statement, for the 15 month period ending 31 December 2012, it recorded a loss of £4.1m. Bedroom occupancy was 64% with an average room rate and room yield of £52.41 and £33.62 respectively. The statement also noted that since the end of 2012, banking covenants had been breached in two of the subsidiary companies: Akkeron Hotels Ltd and Akkeron Hotel (Admiral) Ltd, but that the company had continued to receive the support of the relevant banks.
Akkeron Hotels Group was born out of the administration of the Folio Hotels, the 18-strong group of managed provincial hotels which went into administration in December 2008.
Eight of the Folio hotels were sold to the newly launched Akkeron Hotels Group, founded by property developer Colin Johnston and James Brent, the former global head of real estate and lodging at investment bank Citi, who went on to acquire Plymouth Argyle FC in 2011. A further 10 properties were acquired by Akkeron Hotels Group in 2011 following the administration of Butterfly Hotels and Crowne Hotels.
Folio Hotels portfolio split to create two new hotel groups >>
