Five-star hotel firms hit buffers | Scottish Licensed Trade News

Scottish Licensed Trade News

Five-star hotel firms hit buffers

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THE parent companies of five-star hotels in Glasgow and Edinburgh have gone into administration.

SI Argyle Street Limited and SI Hotels Glasgow Investments Limited, which own and run the Radisson Blu in Glasgow’s Argyle Street under franchise, called in administrators earlier this month.
It came after The Scotsman Hotel Group Limited went into administration last month, although KPMG said the subsidiary which operates The Scotsman Hotel in Edinburgh – The Scotsman Hotel Company Limited – is not affected.
Radisson Blu’s administrators, RSM Tennon, confirmed that an undisclosed preferred bidder for the 250-bedroom hotel, which opened in Glasgow in November 2002 and includes the Collage bar and restaurant and Atrium bar, has been chosen, with the sale process having been underway for “some months”.
Joint administrator Tom MacLennan hopes to complete the sale soon, with staff expected to transfer across to the new business.
“We wish to reassure all staff and customers that our intention is to continue business as usual and focus our efforts on completing a rapid sale of the hotel,” he said.
Meanwhile, it’s business as usual at the five-star Scotsman Hotel in Edinburgh after administrators were called in to parent company The Scotsman Hotel Group Limited (SHGL).
Located in the former Scotsman newspaper offices on North Bridge since 2001, the hotel has 69 bedrooms and suites, a health club and spa and the North Bridge Brasserie.
Ian Corfield and David Crawshaw of KPMG’s restructuring practice said the hotel’s operator, The Scotsman Hotel Company Limited, is not in administration.
“London-based SHGL owns two UK subsidiaries which are not in administration; The Scotsman Hotel Company Limited, which runs The Scotsman Hotel in Edinburgh, and The Baby Grand Hotel Company Limited, which runs 42 The Calls Hotel in Leeds,” KPMG explained in a statement.
“SHGL also owns Tremoille Holdings SA, which runs Hotel de la Tremoille in Paris.
“All hotels continue to trade as normal.”

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