Main Photo: The Croydon Park Hotel
Date: June 2020
Location: Croydon, Surrey, England, UK
Name: The Croydon Park Hotel
No. of Keys: 211
Seller: The Croydon Park hotel in Greater London has fallen into administration due to the impact of Covid-19, with all 91 members of staff made redundant. On 15 June KPMG’s restructuring practice were appointed joint administrators to Kasterlee UK, which traded as Croydon Park hotel, a four-star hotel with 211 bedrooms.
While the hotel had been closed to visitors since lockdown measures were introduced on 23 March, it had been used in recent weeks by the local authority to provide temporary accommodation for key workers, as well as shielded accommodation for vulnerable people in the local community.
However, with that arrangement coming to an end on 14 June, and with the impact of Covid-19 having a significant impact on the company’s cash position, directors took the decision to appoint administrators.
The administrators are speaking with employees to provide them with all available support and assistance and are considering their options to realise value for the business.
Private equity company Evans Randall sold the freehold of the Croydon Park hotel to Croydon Council off a guide price of £25m in 2018…we think it might have gone for nearer £30m. Kasterlee, the company which held the leasehold interest in the property, was previously owned by Dalata Hotel Group. The group sold the company in 2017 to an undisclosed buyer.
Buyer: Open to speculation…
THPT Comment: A good size hotel, in this thriving suburb of London, with fast-train access to Victoria, and a lot of corporate offices in the town…would make a good buy for chains under-represented in the area.
First Seen: The Caterer
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