A Birmingham hotel where guests can sleep in windowless “pods” had debts of more than £3.2 million before it entered administration.
Nitenite hotel, which replicated “pod” or “capsule” hotels which first became successful in Japan in the late 1970s and 1980s, called in administrators from Zolfo Cooper, who are seeking to sell it as a going concern.
Administrators said that adverts, including one placed in the Birmingham Post , resulted in more than 50 enquiries from interested parties.
Accounts for Nite Nite (Birmingham), and sister company Nite Nite Holdings, show the companies’ debt to the bank stood at a total of £3.26 million.
The documents also show the hotel company collapsed with a total of £2.6 million of unsecured debt.
The administrators’ report states: “The estimated to realise value for the leasehold property of £1.5 million is significantly lower than the valuation of the property provided by the joint administrators’ agents and valuers.”
Nitenite hotel on Holliday Street has 104 bedrooms and when it opened in 2006, the hotel boasted that each windowless room would have a 45-inch plasma screen so guests can watch films or opt instead for “window mode” which would screen images of the world outside.
It was meant to be the first of 30 similar projects, totalling 4,000 bedrooms, in city centre locations throughout the UK.
It is still trading as a hotel through administrators Ryan Grant and Simon Wilson, with Colliers International handling the sale.