A UK or European hotel operator is most likely to take over the running of London's Grosvenor House and Waldorf hotels, say industry insiders.
US operator Marriott International had been mooted as a frontrunner in the race to take on the leases of the hotels. Owner Royal Bank of Scotland (RBS) put them into administrative receivership last month after operator Le Méridien failed to pay rent due on 11 hotels belonging to the bank.
Insiders said it would be almost impossible for Marriott International to take over the properties, because accounting laws in the USA make it difficult for companies to lease hotels.
In the USA, leases are treated as debt and need to be supported on a company's balance sheet. In the UK and Europe, however, hotels tend to be leased rather than managed, as are their US counterparts.
One insider said: "If they were going to be leased, and that is one option, it's more likely that it would be a European operator. It could be that RBS decides to convert from lease to management, but it does favour leases."
French hotel group Accor is said to be keen to open two Sofitel hotels in London and may have its eye on the hotels.
UK-based Hilton Group has admitted it wants to take over at least one of the 11 hotels, but insiders said it was unlikely to pay the rents RBS was charging.
By Samantha McClary
Source: Caterer & Hotelkeeper magazine, 28 August - 3 September 2003