Owners of Park Inn set to quit Harlow

Business / Thu 29th Dec 2016 at 08:09pm

THE owners of the Park Inn in Harlow have issued a statement indicating that they will be giving up the lease of the Park Inn in Harlow.

What this means for staff, customers and the building is unsure. The building has had a number of “identities” over the years from the Saxon Inn, the Moat House to the Park Inn.

A spokesperson said: The Rezidor Hotel Group will strategically exit six hotel contracts under Full Repairing and Insuring lease in the UK in 2017.

The hotels are located in regional markets and have been unprofitable for Rezidor due primarily to above-market rental level of the leases. As part of the exit, Rezidor has agreed to a surrender premium payment of £15M in 2016 to the landlords.

Wolfgang M. Neumann, President & CEO of The Rezidor Hotel Group, commented: “These exits are part of Rezidor’s long-term asset management strategy that involves exiting from unprofitable contracts and renegotiating of terms including renovations across EMEA. In 2016, we have successfully completed 15 such transactions.

The properties will remain in the group”s lease portfolio for maximum one more year.

Despite this exit, Rezidor will remain a major international hotel player in the UK with 28 hotels and 6,000 rooms in operation.

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