Insider Media Limited

Property group Beetham has suffered yet another blow as administrators have been called into Beetham Hotels Birmingham. The company holds the lease to the Radisson Blu hotel on Holloway Circus in Birmingham.

Paul Flint, Brian Green and Mark Orton from KPMG appointed joint administrators to the company on 2 December 2011.

However, they have stressed that the hotels will continue to trade as normal as KPMG's appointment is in respect of the financial arrangements of the landlord. All 120 employees remain in employment and no redundancies will be made.

Mark Orton, joint administrator and partner in restructuring at KPMG, said: "The hotel opened in January 2006 as the Radisson Blu Birmingham and has grown to become one of Birmingham's premier hotels. It is managed directly by Rezidor Hotels UK Limited under the Radisson brand, and this arrangement will continue.

"It is very much business as usual at the hotel, this is a quality asset in a major city centre and the administration is only due to the financial restructuring of the landlord, which is part of the Beetham property group. Existing bookings and deposits are fully secure; the hotel continues to take bookings and is looking forward to a busy Christmas period."

Mark Willis, Rezidor UK regional director for the Radisson brand, added: "We have been working with the lender and their advisers KPMG in order to arrive at a solution which does not in any way impact the trading of the hotel as a business. Rezidor continue to manage the hotel and all bookings and deposits are secure and will be honoured. We look forward to managing this successful hotel for many years to come."

In July this year, administrators were appointed to market the assets of Regional Landmark Hotels, formerly known as the Beetham Organization.

The business was owned by Stephen Beetham, brother Simon Frost and father Hugh Frost, and was involved in some of the most striking developments in the North West, including the Beetham Tower in Manchester and the 40-storey West Tower in Liverpool.

A report from Baker Tilly revealed that Regional Landmark Hotels owed an estimated £51m when it failed, with sizeable chunks due to Barclays and Bank of Scotland.

The company's collapse followed the administrations of a series of subsidiaries within the group, including that of Beetham Hotels Manchester, operated by the Hilton Hotel chain. KPMG also acted on the administrations of Beetham's Manchester and Liverpool hotel businesses, which were sold to London-based Cypriot businessman Loucas Louca for a combined £60m.