The collapse of the 28-strong chain of Von Essen hotels and resultant sell off of the properties by administrator Ernst & Young, is set to result in further knock down sales.
The Times newspaper reports today (8 December) that a joint venture between Patron Capital and Halcyon Hotels and Resorts has agreed to snap up Thornbury Castle, near Bristol, and The Ickworth in Suffolk for less than £30m, a hefty 25 per cent discount on the combined asking price.
Nearly half the Von Essen properties have now been sold at deals mostly far below guide prices.
Von Essen owed Barclays and Lloyds banks nearly £300m when the financiers pulled the plug in April.
The portfolio is now expected to reach less than £140m, well below the £200m asking price.
Unsecured creditors are likely to be left empty-handed.
Many properties are said to be in a poor state and Patron and Halcyon are understood to be planning to invest £10m in restoring seven of the properties.
Halcyon is controlled by Nigel Chapman who sold his Luxury Family Hotels business to Von Essen for £30m six years ago. Patron recently led a rescue of Jarvis Hotels.
Bids have also been considered for Cliveden in Berkshire and Bath’s Royal Crescent Hotel.
All parties remain tight-lipped over the sell off.
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