Macdonald Hotels & Resorts has axed plans to sell 27 of its 45 sites to a private equity investor and is now in a race to repay debts of £200m.
The group had been due to finalise the sale of the hotels, including the Rusacks Hotel, overlooking the 18th green at St Andrews, the Randolph Hotel in Oxford (pictured), and the Bath Spa by the end of August.
However, a spokesman for the group said, “We decided not to proceed with the negotiations for the sale of 27 properties after receiving a major offer for two of our hotels.
“This deal is due to conclude before the end of the month and will enable us to substantially reduce the group’s borrowings. It also allows us to take forward discussions on a number of very positive refinancing options for the business, which are actively under consideration.”
Macdonald Hotels has yet to reveal which two hotels are under offer.
The company's financial woes have been impacted by the rise in business rates, the rising costs of minimum wage rates, energy bills, the apprenticeship levy and pension contributions.
For the year to 29 March 2019, the company reported a pre-tax loss of £1.1m and turnover fell by £1m year-on-year to £153.2m.