Property Market Deals/Trends | 28 June 2011
The Royal Bank of Scotland (RBS) is to sell off 42 Marriott Hotels in the UK to pay the debts it is owed from the current owners.
RBS is owed close to £1 billion from the current owners of the hotels and after refinancing deals fell through, it is set to sell off the hotels for the second time in four years.
With such a large portfolio for sale, the deal would represent the largest commercial refinancing deal the hospitality industry has ever seen.
The hotels were originally sold in 2007 but with the buyers struggling to pay off the debt they accrued in the purchasing of the hotels, RBS has called in the administrators and is once again looking for a buyer.
RBS has appointed Ernst & Young as receivers in the deal which the bank is hoping will eradicate the £900 million debt it is owed from the current owners.
Marriott has insisted, however, that it will be ‘business as usual’ as it is currently just five years through a 30 year contract to manage the hotels.
Administrative receiver Roy Bailey told nebusiness.co.uk of the developments: “Marriott will continue to operate the hotels and this decision will not affect customers, suppliers or employees of the hotel.”
Regarding the sale, previous owners Avestus told the Irish Independent in a statement: “This restructuring was fully funded and supported by the shareholders, the lead banks within the banking syndicate and Marriott hotels and until very recently was progressing in a positive and constructive manner.”
Written by David Howells on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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