Manchester hotel placed into administration after failing investors

A Manchester hotel is one of six to be placed into administration after investors became concerned about their returns.

Property company Shepherd Cox operates a range of properties around the country, including four in the North West: The Comfort Inn Manchester North, in Middleton, which it acquired in June 2017, the Holiday Inn Chester West and Ibis hotels in Lymm and Knutsford.

The six hotels, in Chesterfield, Hartlepool, Darlington, Manchester, Sedgefield and Bicester, called in administrators from Quantuma earlier this month.

Each of the Shepherd Cox companies is a Special Purpose Vehicle (SPV) that owns a hotel and sold hotel rooms to investors with the promise of a guaranteed fixed return.

The SPVs were unable to meet these guaranteed payments and were held by the High Court to all be insolvent.

Law firm Crowell & Moring has been appointed to the case.

Partner Paul Muscutt said: “The ruling of the Insolvency and Companies Court is the right result for the investors who can now begin to get answers in relation to the management and running of their investments.

“In the next phase, our team will be advising the administrators in investigating the affairs of the companies and the directors and realising assets to maximise returns to the creditors.”