6 Hotels in Midlands and Northern England Placed into Administration After Failing Investors
Location: Chesterfield, Derbyshire, and Hartlepool, Darlington, Manchester, Sedgefield and Bicester, Midland and North England, UK.
Name: The Sandpiper Hotel and others…
Guide Price: TBA
No. of Keys: 46 plus TBA
The Opportunity: The Sandpiper Hotel in Chesterfield, one of six hotels owned by Shepherd Cox Hotels, has been placed into administration after investors became concerned about their returns.
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. A partner 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.”
Shepherd Cox bought the Sandpiper Hotel from retiring owner David Cook in 2017 in a £1.35m deal. Cook built the hotel on Sheffield Road, Chesterfield in 1975 and operated it as a family-run business.
The Sandpiper has 46 en-suite bedrooms and three self-catering apartments, a restaurant that can sit 60 people, conference and banqueting suites, a café lounge, restaurant and parking.
Main Photo: The Sandpiper Hotel
Tenure: Freehold…Clarity required on the investors that “bought a room”
Flag and Management: Free
Current Owner: Shepherd Cox
Agent: No agent appointed as yet…Contact THPT
Guide Price: TBA
Date Posted: June 2020
THPT Comment: Clarity is being sought as to whether all six hotels have been placed in administration, or just the Sandpiper. Sadly another company that tried the “invest in a hotel-room” business has met a sticky end….probably kill off the concept. Shepherd Cox actually has 20 hotels in their portfolio, so we assume the remainder are still in play….mostly attractive country-house hotels, with nine branded Holiday Inn, Ibis and Comfort.
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