QUEENS Moat Houses, the heavily indebted hotel operator, is understood to have initiated a strategic review amid growing concern over the company’s financial stability.
It is also believed that, separately, Andrew Coppel, the chief executive credited with leading QMH’s recovery from the brink of collapse a decade ago, is preparing to step down and hand the reins to Stuart Metcalfe, QMH’s corporate development director.
The Times has learnt that QMH has appointed Cazenove and Deloitte & Touche to advise on its strategic options. Although an outright sale has not been ruled out, the process is expected to focus on refinancing the debt burden, which in December stood at £639 million. Analysts said that a sale of QMH’s German division and possibly its Dutch arm were more likely than a sale of the company.
Fears over QMH’s financial state have arisen after a most difficult trading period for the hotel sector since QMH almost collapsed in 1993 under a £1.4 billion debt burden. In May Mr Coppel said the group was doing all it could to mitigate the impact by cutting costs.
Since then QMH has sought to lessen the strain on its covenants by putting two of its 89 hotels, the Sloane Square and Kensington Moat Houses, up for sale for about £25 million. However, a lack of headroom on some covenants prompted it to bring forward a review of its financing options.