Folio Hotels has been rescued from administration after a management buyout of 18 of its 36 hotels.
The new company is called Mulbourn Limited and will continue to trade under the Folio Hotels banner with funding provided by the hotels’ landlords, the management team and private equity. The deal is expected to save 1,200 jobs around the country.
The new company will be headed by managing director Matthew Welbourn and finance director Alan Murray, who held similar roles in the previous company. Mulbourn Limited is expected to turnover £48 million in its first year.
Director of sales Nick Greaves said: “It is very much business as usual and we are keen to build our relationships with hotel bookings agents and travel management companies. We will be honouring all our existing bookings and will continue to maintain commission at previous levels.
“We are keen to continue doing business with the industry. Trading conditions will be tough over the next few months however we believe we are well poised with an excellent product and an ability to reach deals,” he added.
The hotels which have been saved had recently been refurbished at a cost of £35 milion, said Greaves.
The company had been forced into administration at the beginning of December 2008 due to the cost of the extensive refurbishment programme and the beginning of the recessionary environment.
The remaining 13 hotels in the collection will be managed by Bespoke Hotels.