An acclaimed hotel in the UK has gone into administration, with its owner alleging that the lender forced the move due to financial disagreements. The 92-room Mour Hotel, situated near Nottinghamshire’s M1, appointed administrators on March 18. The administrators, Bob Maxwell and Julian Pitts from BGT Advisory, mentioned that the four-star establishment is still operating while seeking a buyer. All 60 staff members remain employed, and existing bookings and events will proceed as scheduled.
Originally part of the Dakota hotel chain founded by former F1 driver David Coulthard, the boutique venue features a 150-capacity events space, meeting rooms, a restaurant, and a gym. Bob Maxwell, a partner at BTG restructuring firm, noted challenges such as low weekend occupancy rates and underutilization of event facilities. Despite this, administrators believe the hotel is viable and anticipate interest from potential buyers.
Owner Russell Allen, of Seymour Capital, stated that the lender, Virgin Money, pushed the business into administration after failed financial negotiations. Allen clarified that the hotel was not insolvent but struggled to repay a £6 million loan taken in 2020. He opposed an agreement that would grant the bank more control over the business. Allen expressed optimism about the hotel’s recent performance, with increased bookings and local developments expected to drive demand. He aims to sell the hotel for around £6.75 million to settle debts.
A Virgin Money spokesperson mentioned their efforts to assist struggling businesses but cited the inability to continue supporting the hotel. Joint administrator Mr. Maxwell emphasized the hotel’s potential for a new owner with Virgin Money’s backing. He highlighted the quality of the property and increased bookings due to a local venue closure. The hotel will continue operations with existing staff and may even hire more employees for the upcoming busy seasons.
