THREE HOLIDAY INN hotels have been placed into administration, with FRP Advisory taking on the task.
Partners at FRP Advisory, Iain Fraser and Tom MacLennan, having been appointed joint administrators to a Holiday Inn and a Holiday Inn Express in Aberdeen, together with a Holiday Inn Express in Edinburgh.
The hotels are continuing to trade as normal through the sale process and are currently owned by Aberdeen-based European Development Company, EDC. There are no immediate plans for redundancies.
The administration was caused by severe cash flow problems caused by the downturn in the oil and gas sector, as well as competition from new hotels in the area even though occupancy levels were high.
Iain Fraser, joint administrator and partner at FRP Advisory, said: “The administration presents a rare opportunity to acquire quality hotels with an established trade and reputation in their local markets. The hotels could appeal to an existing hotel operator looking to expand their business, or an entrepreneur keen to enter the hospitality market.”
EDC was founded in 2007 and owned the three hotels, with a turnover from them around £11m with 136 staff, much of which in Aberdeen.
Fraser concluded: “I am pleased to say that we are in advanced discussions for the sale of the Edinburgh hotel.”
FRP Advisory is ranked as one of the top 25 firms in the Accountancy Age top 50+50 survey.
Adrian Hyde, a partner at CVR Global, has been appointed as the new president for a year-long term, effective 21 April this year
Former chief executive of HMRC Dame Lin Homer has been appointed to the ICAS council as a public interest member
Patrick Bossert will be responsible for asset intelligence strategy and digital business transformation across the UK, with a focus on central government, transport and infrastructure
New insolvency rules enter into effect on 6 April 2017. Caroline Sumner of R3 discusses what the changes mean for the insolvency profession