Akkeron Hotels (Admiral) Ltd and Akkeron Hotels (Corby) Ltd have become the latest subsidiaries of the Akkeron Hotels Group to go into administration, just a few days after their sister company went the same way.
The companies changed their name to Barinbrook Ltd and Barinbrook (Central) Ltd respectively on 21 February before going into administration on 26 February. This follows the pattern of Akkeron Hotels Ltd, which changed its name to Rosford Management Ltd on 17 February just before the appointment of insolvency practitioners Begbies Traynor as administrator.
The two companies, now operated by administrator Zolfo Cooper, comprise seven hotels: Best Western Rockingham Forest hotel, Corby; Himley Hotel, Dudley; Quality Hotel, Bury St Edmunds; Quality Hotel, Colchester; Quality Hotel, Peterborough; Cromwell Hotel, Stevenage; and Quality Hotel, King's Lynn.
The administrators hope to find a suitable purchaser for the freehold 71-bedroom Best Western Rockingham Forest hotel.
All the other hotels, which are leasehold, will continue to trade as usual and are set to revert to the freeholder who will decide their fate. Peter Holder, partner at Zolfo Cooper, said: "We are assessing the available options and would like to thank the staff for their continued support and professionalism during this process."
The five hotels in Peterborough, Bury St Edmunds, Colchester, King's Lynn and Stevenage continue to be operated under a franchise agreement with Choice Hotels.
Duncan Berry, chief executive UK, Choice Hotels Europe, said: "There is no impact on those five hotels, which are all open for business and continue to be part of Choice's network. Choice anticipates the hotels will continue to operate under their respective brands for the foreseeable future."
Four of a further five hotels operated under franchise from Choice Hotels are now managed by Suite Hospitality, the new subsidiary company set up by Akkeron Hotels Group. They are: Clarion Collection Hotel Makeney Hall, Clarion Collection Hotel Richmond Gate, Clarion Collection Hotel Buckerell Lodge, Exeter, and Clarion Collection Harte & Garter Hotel & Spa, Windsor.
Concern about the viability of Akkeron Hotels (Admiral) was raised in its last financial statement, which recorded a loss of £274,278 for the period 2 October 2011 to 31 December 2012.
A report prepared by accountants Shipleys stated that due to the loss and that the company's liabilities exceeded its assets by £93,158, there was "a material uncertainty which may cast significant doubt about the company's ability to
continue as a going concern"
However, the directors, who included James Brent, owner of Plymouth Argyle FC, and Matthew Welbourn, said like-for-like occupancy had grown from 61% to 64% and believed that "a solid platform for growth has been built in a very difficult and competitive trading environment."