Korallus steps down from The Hotel Collection after restructuring
The sudden management change comes two months after the financial restructuring of the firm’s parent company UK Group of Hotels, which saw US-based fund Lone Star acquire the company’s debt from the Irish Bank Resolution Corporation.
A spokesperson for The Hotel Collection could not confirm whether Korallus, who joined the company in 2012, was leaving to take another position, but said he and Hearn had decided the firm needed “one clear leader” to take the business forward.
In a statement from the group, Korallus said his exit from the business was “entirely amicable”, while Hearn added: "We have big plans for The Hotel Collection moving forward and we look forward to building on the fantastic foundations that Fredrik has laid."
Positioning for growth
The company is also offloading two of its properties – The Basingstoke Country Hotel and The Palace Hotel in Buxton – in a bid to “rationalise” its portfolio and position the firm for growth.
“Whilst successful properties in their own right, these hotels for various reasons do not fulfil our vision for the future of the brand. The remaining hotels will all benefit from strategic investment as we improve each property for our customers to enjoy,” the firm said.
Christie & Co has been appointed to handle the sale, with the Palace Hotel valued at £7m or over and Basingstoke Country Hotel at £5.5m.
Financial restructuring
UK Group of Hotels was placed into administration in August 2014 after it became apparent that its subsidiary companies would not be able to repay their debts – reported to be around £320m.
Corporate advisers Duff & Phelps were appointed to handle the process, and completed the debt restructuring on 15 September, but the deal did not include a change in management.
At the time, Paul Williams, managing director of Duff & Phelps, said: “We are pleased that during the process all subsidiaries carried on trading as normal, retaining jobs for all of the 2,200 staff and preserving ongoing business for all suppliers, both nationally and locally.
“The Hotel Collection under its new corporate structure continues to enjoy the support of its lender and the enhanced management team and better financial position will secure growth in revenue and market share for the company.”
