One of Birmingham’s best known hotels, the Radisson Blu, is at the centre of a shock financial collapse.
Paul Flint, Brian Green and Mark Orton of business advisers KPMG have been appointed joint administrators to Beetham Hotels Birmingham.
The business holds the lease to the Radisson on Holloway Circus. The hotel is continuing to trade as normal as KPMG’s appointment relates to the financial arrangements of the landlord. All employees remain in employment and no redundancies have been made.
Mark Orton, joint administrator and partner in restructuring at KPMG, said: “The hotel opened in January 2006 as the Radisson Blu Birmingham and has grown to become one of Birmingham’s premier hotels. It is managed directly by Rezidor Hotels UK under the Radisson brand, and this arrangement will continue.
“It is very much business as usual at the hotel, this is a quality asset in a major city centre and the administration is only due to the financial restructuring of the landlord, which is part of the Beetham property group. Existing bookings and deposits are fully secure; the hotel continues to take bookings and is looking forward to a busy Christmas period.”
The administration has no impact on other hotels operated by Rezidor.
Mark Willis, Rezidor UK regional director for the Radisson brand, said: “We have been working with the lender and their advisers KPMG in order to arrive at a solution which does not in any way impact on the trading of the hotel as a business.
“Rezidor continue to manage the hotel and all bookings and deposits are secure and will be honoured. We look forward to managing this successful hotel for many years to come.”
The fall into administration comes after a string of Midland hotels collapsed in recent months. In June the owners of Birmingham’s Hyatt hotel, on Broad Street, called in administrators from Ernst & Young.
The Hyatt Regency was caught up in a cash crisis when one of Britain’s richest families lost control of the business after falling into dispute with banks and apparently defaulting on loans.
Hyatt Regency Birmingham, freehold owners of the 319-room hotel, was placed in administration. The company was part of an empire run by wealthy entrepreneur and hotel tycoon Gulshan Bhatia. Ms Bhatia, who arrived from Tanzania in 1976, and her son Asif were forced to relinquish control of the Hyatt and the Waldorf in London’s West End in the wake of the cash dilemma.
Elsewhere, The Fortmere Group, which owns three Ramada-branded hotels in the region, also collapsed in May.
Dozens of jobs were saved after administrators sold the Ramada Warwick Hotel and Conference Centre at Kenilworth and sister hotel Ramada Park Hall in Wolverhampton in recent months.
The group’s Ramada Birmingham Oldbury Hotel is the only hotel that remains unsold.