The 16-strong hotel group was placed in the hands of administrators KPMG when holding company Piccadilly Hotels went into receivership on 28 June.
BigHospitality understands the move was the result of an unsustainable debt structure, which clashed with the group’s operating model during the economic downturn.
Upon its administration, Penter led a team to acquire the entire stable, which is now being traded under the Cordial Hotels group, for an undisclosed sum.
Joining Penter at Cordial Hotels are former Jury’s Inn chief executive Niall Geoghegan as chairman, and Bob Lewis from International Hotel Property Service, who assumes the role of non-executive chairman.
As a result of the sale, Menzies Hotels, which includes the Welcombe Hotel in Stratford upon Avon, has been financially restructured and is now on a ‘stable financial footing’, with no redundancies occurring.
David Crawshaw, joint administrator and restructuring partner at KPMG, said: “We are delighted to have sold the 16 Menzies Hotels on appointment to a team led by the existing chief executive. This should reassure both customers and employees alike.”
Remaining properties
Piccadilly Hotels’ remaining six properties, all of which are leased to Travelodge, will now be marketed for sale as well.
The hotels in Bath, Edinburgh, Coventry, Newcastle, Oldham and Stevenage will continue to trade under Travelodge despite any impending sale.
Crawshaw added: “We will consider the strategy for the sale of the six remaining hotels in due course. In the meantime, we would like to reassure stakeholders that it is business as usual at the hotels, with Travelodge continuing to manage operations.”