Troubled hotel group Queens Moat Houses (QMH) has done a deal with some of its lenders that will allow it to sell its hotels and solve its massive debt problems.
QMH has struck a deal with its debenture lenders, who represent £215m of its £630m debt, which will enable it to repay them early if it pays £236.5m, or 110% of the loan. The repayment, which, before the deal, could not be completed until 2020, will mean that QMH is free to dispose of its hotels and clear the rest of its debt.
Deals to sell the group's hotels are expected to be struck soon.
Five companies are understood to be bidding for QMH's UK, German and Dutch hotel operations, but these are expected to be whittled down to two over the next week.
Hotel groups Macdonald and Accor are said to be among the favourites to win the auction.
QMH was unofficially put up for sale in January this year when it appointed investment bank Morgan Stanley to send out "teaser" documents to more than 50 companies.
The hotel group has struggled with debt for about a decade, and this latest battle is expected to culminate in the removal of the group from the London Stock Exchange, where its shares have been suspended for more than six months.
QMH comprises close to 90 hotels.