hotel in liquidation

gill25

I'm looking at wedding venues and my favourite hotel so far has recently gone into liquidation. My understanding is that the hotel will remain open as if it is making a profit it makes sense to continue operating and that it won't be sold until the property market improves. So I don't think that its a big risk to choose it for my wedding but a few people have said that I should dismiss it completely.
I'd really appreciate your comments.
Thanks

Bookkeeper09

Is it in liquidation or receiver/examinership??

gill25

Crap. I'm not good with these financial terms.:) The hotel is in receivership.

Bookkeeper09

Ah ok!
How far away is the actual wedding??
Do they require much of a deposit?
It is possible for a company to continue to trade and theres always a possibility that you could book a different hotel and for them to go into receivership in the period up to your wedding.
A friend of mine booked her wedding a couple of months ago for next March and a few weeks aftre they had booked the hotel went into receivership. They still plan to have their wedding there.
Have you looked at many other venues??

Da GOAT

contact your hotel and have a chat.

Im having my wedding in citywest and confident enough theyll still be there in June 2011. We received letters from the receiver that all will go ahead and dont worry. Regards to hotels, if the hotel is in a good spot then however looks to buy the hotel will run it as a hotel. If the hotel is in a bad area then things are not so good.

this is of course with a liquidation since the hotel wil need to be sold. receivership/examinership are usually either entered into by the companys creditors (usually by banks on the hotels property), banks arent looking to lose all their money by selling at a loss. Instead someone is appointed to run the hotel and cut unnecessary costs etc and improved its running. When that someone has doen the job the companys assets and given back to the company to run.

gill25

I'm hoping for late summer/autumn next year. I don't actually know how much they require for deposit, it wasn't in the brochure but other places I've looked at have wanted about a grand so I thought that was the standard. I've looked at 13 places so far, don't know how many places people usually look at before deciding.
You're right in saying though that a place could still go into receivership at any point before a wedding.
I did discuss the situation with the hotel and they assured me that it will continue to run with the current standards and I believe them but my boyfriend and Mum aren't so sure

tinkerbell

If it's just under admin / receivership then just call your hotel and then will let you know. There are lots of hotels now that are operating as normal but are just under different management as per the receivership.

Da GOAT

funny when i heard my hotel Citywest is under receivership i thought to myself, I wonder how many other hotels are too. For smaller hotels Id wonder if there are tons under same but not bigger enough to get a news report or mention in the paper.

Da GOAT

gill25 wrote: »

I believe them but my boyfriend and Mum aren't so sure

dont worry too much about that, as an accountant myself Ive found people who dont really understand receivership concepts get very worried and consider it a doomsday/omg scenario. If they talk about it again just explain the concept again.

gill25

Thank you all for your replies. You've put my mind more at ease. Best of luck with your wedding Da goat

killiank

We are getting married in November & when we got down to picking our 3 favourite locations we found that all three of the venues were in some form of examinership or receivership. The one we selected is still in examinership & im happy that there is nothing out of the ordinary to worry about.

littleoulme

To be honest, the one's that are in recievership are usually the safest. The bank owns them, so will keep them open for as long as possible as a going concern, because they are only a building otherwise. HTH's/