The last hotel in the Folio Hotel Group has been sold, completing the administration process that began in December.
Folio Hotels was forced into administration at the beginning of December after struggling to make its rent payments as the consumer slowdown lead to a slide in bookings.
The company, which has a group turnover of around £70m, has been saved, with 19 hotels sold to Folio’s ex-management team under a new company called Mulbourn.
A further nine have been sold to Callbridge Hotels, three to Galleon Taverns and one to Royal Hospitality, all of which will be managed by Bespoke Hotels.
Paul Clark, partner at administrator MCR, said it had traded the group through the Christmas and New Year period, whilst negotiating the sale.
“We secured the continued support of key suppliers, including food and beverage companies, and retained all 2,200 hotel employees,” he said. “The landlords agreed a rent-free period which was important to the success of the administration.”
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By Gemma Sharkey
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