Administrator Ernst & Young has put two well-known hotels, owned by subsidiary companies of Northern Irish group WG Mitchell, on the market for sale.
It has appointed property services advisory company Christie & Co to sell the freehold interests in Park Inn Russell Square hotel on Southampton Row and the Park Inn St Helens Hotel on Linkway West between Manchester and Liverpool.
Ernst &Young was appointed administrator to 28 of WG Mitchell subsidiary companies earlier this year. WG Mitchell is headed by well-known Northern Irish property tycoon Patrick Hegarty.
The Park Inn, formerly the Bonnington Hotel, has 214 bedrooms and 14 conference and meeting rooms, and was bought by Hegarty for around £70m. The Park Inn St Helens Hotel has 84 bedrooms.
The hotels are available separately or together and both hotels have been subject to investment in the bedroom and public areas.
At the time of its appointment Ernst & Young said: ‘The companies were operating in a challenging market place and have been finding it increasingly difficult to meet the significant backlog of creditors as well as ongoing debt service obligations.
‘The business model under which the companies have been operating was becoming unsustainable.’
Ernst & Young said it would continue to operate the companies whilst considering options for disposal.
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