UK hotel group Menzies Hotels was bought out of administration on Friday by the company's management.
Menzies, which owns and operates 16 hotels across Great Britain, was put into administration under Lloyd's Bank and KPMG on June 28 due to heavy debts. Menzies, along with six Travelodge hotels, were part of the Piccadilly Hotels holding company, owned by UK commercial property manager aAIM and businessman Robert Tchenguiz. Picadilly had a US$371 million (£232 million) debt with Lloyd's mature in December 2010. Neither aAIM nor Tchenguiz will have a stake in Menzies now.The group is not currently planning to add any hotels to its roster, the spokesperson said.The new ownership team, under the name Cordial Hotels, is headed by Menzies Hotels CEO Tim Penter. The amount of the buoyout is undisclosed. Piccadilly Hotels bought the hotel group for a reported US$285 million (£180 million) in 2006.Menzies Hotels said no changes to operations would be implemented. The company employs 1,300 staff.The group is not currently planning to add any hotels to its roster, the spokesperson said.
