Privately owned Folio Hotels has reportedly called in administrators following a decline in trading and failed negotiations with landlords.

The group, set up three years ago by two former managing directors of Regal Hotel Group, had a turnover of about £70m.

Based in Swindon it employs 2,000 people, runs 34 three and four-star properties, including the Richmond Hill and Richmond Gate hotels in southwest London, Hall Garth Hotel in Darlington and Etrop Grange at Manchester Airport.

The company, which leases rather than owns its hotels, had been in negotiations with its landlords for several weeks with the aim of securing a rent holiday.

According to the Times, the administration was precipitated when the owner of nine of its hotels - believed to be the Landesberg and Rosenberg families, who also own Admiral Taverns - pulled out of the negotiations.

Folio was founded at the beginning of 2005 by Nicholas Crawley and Charles Holmes, who worked at Regal in the late 1990s and more recently at the Four Pillars Hotels group.

The administration is being handled by MCR, the London-based restructuring firm that is handling the administration of MFI, the furniture retailer.

The Times