The Press and Journal (Aberdeen and Aberdeenshire)
Bids in to rescue city hotels
Administration: Buyers sought for properties owned by Aberdeen duo
Administrators are mulling bids for two hotels that were among businesses owned by Aberdeen-based entrepreneurial duo Ivor Finnie and Alan Wallace.
A closing date for offers for the Holiday Inn at Westhill and a Holiday Inn Express in Chapel Street, Aberdeen, has passed, it emerged yesterday.
Property firm JLL had been marketing the two sites, which between them
“Hopeful that a sale will be secured for both hotels”
have more than 240 bedrooms, separately or as a package.
FRP Advisory was appointed as administrator for these hotels and another in Edinburgh following the collapse of the European Development Company (EDC) – controlled by Mr Finnie and Mr Wallace – in November.
The Holiday Inn Express in Edinburgh city centre was sold to Middlesexbased International Hotel Properties in a £17.7million deal earlier this year.
In an update on the north-east sites, a spokesman for FRP Advisory said: “A closing date for offers was set for last Friday, April 21, with a number of offers received for the hotels, which the joint administrators (Iain Fraser and Tom MacLennan) are currently reviewing.
“They are hopeful that a sale will be secured in due course for both hotels, however it will take several weeks to progress matters and in the meantime the hotels are continuing to trade as normal.”
All three EDC hotels operated under franchise agreements with InterContinental Hotels Group, the company behind Holiday Inn and Holiday Inn Express.
According to FRP, EDC and subsidiaries owed about £32million, including £26million to LaSalle Investment Management and Santander UK. Aberdeen and Aberdeenshire councils were owed £1,248.60 and £53,240 respectively.
At the time of FRP Advisory’s appointment, the hotels employed 117 staff in the two north-east locations.
In a separate administration, business turnaround firm AlixPartners is considering options for the assets of other businesses that were controlled by Mr Finnie and Mr Wallace.
Holiday Inn and Holiday Inn Express hotels next to Aberdeen Exhibition and Conference Centre, along with the Albyn restaurant in Albyn Place, Aberdeen, also continue to trade.
Statements at Companies House show the three businesses being managed by AlixPartners – European Development Company (Bridge of Don Hotels), European Development Holdings and Verase – had debts totalling tens of millions when they went into administration in September.
AlixPartners said the joint administrators and creditors were “continuing to explore options to maximise value from the sale of the hotels and the Albyn”.