Luxury chain Von Essen Hotels has gone into administration with debts of more than £250 million.
Barclays and Lloyds Banking have appointed administrators Ernst & Young.
Only the Von Essen holding company has failed; the 28 five-star hotels in the group will continue to trade.
Properties in the chain include Cliveden in Berkshire, the Royal Crescent in Bath, Amberley Castle in West Sussex and Hotel Verta in Battersea, London.