The long-term future of hundreds of jobs has yet to be determined after administrators were called in by commercial property Venture Hotel Group.
Administrators from Baker Tilly Restructuring and Recovery, based in Manchester say they are positive in safeguarding a future for the three popular North West commercial properties.
Lindsey Cooper and Russell Cash have been appointed as joint administrators of Venture Hotel Group and are now looking to sell the Paddington House Hotel, Warrington, the Comfort Inn, Chester and the Monton House Hotel, Salford. The Venture Hotel Group was owned by the Abson family.
The headquarters of The Wirral based commercial property company, last filed accounts for the year to April 30, 2010, which showed a pre-tax loss of £152,217 on sales of almost £2.8m.
Together, the commercial property hotels had a turnover of £2 million; however Mr Cash said moneys generated by the business were not adequate to service its debts. Mr Cash is optimistic in selling the three commercial properties, either individually or as a group. The hotels will remain open for the time being.
Mr Cash, a partner at the North West restructuring and recovery specialist Baker Tilly, said: “There was no one outstanding issue. The administration is a symptom of the last couple of years being quite tough.”
“The business has not been able to generate sufficient income to meet its cost base. Though I am hopeful we will get some expressions of interest this side of Christmas, realistically it is likely to be next year before serious discussions with interested parties take place.”
He further added: “Whilst the regional hospitality sector remains challenging, we will do our utmost to ensure the best possible outcome for all concerned and are hopeful that we will be able to achieve going concern sales of each of the hotels.”
Approximately 80 full and part time staff are employed by commercial property Venture Hotel Group. The administrators hope to keep these members of staff whilst they seek a new buyer.
Managing agents Onecall Hospitality have been recruited by Baker Tilly to run the hotels whilst that process is continuing.
Mark Chambers, Managing Director, said: “It is business as usual. All deposits will be honoured and no one has lost anything.”
The Paddington House Hotel, in Manchester Road, Warrington has a total of 37 rooms, a restaurant, a bar and conference facilities.
The Monton House Hotel, in Monton House Road, has a total of 61 rooms, conference facilities and a bar and restaurant. The hotel is known to many locals as the Wendover.
The Comfort Inn, in Hoole Road, Chester, has a total of 31 rooms, a restaurant, a bar and business and corporate facilities.
Concurrently, the first Travelodge in Salford has opened. The commercial property is a £6.4m 156-room hotel in Radycliffe Park. The hotel was developed with supermarket giant Morrisons and has created a total of 30 new jobs in the area.
It is the third Travelodge to have opened in Greater Manchester this year. Previous openings include a hotel on the site of the former Boddingtons brewery and at Upper Brook Street. The three commercial properties have a combined investment of £20m.
Travelodge also expects to open two more hotels in 2012, creating 55 new jobs in Altrincham and Piccadilly Gardens, with an investment of £11.4m.
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