Receivers check in at the Waldorf

RECEIVERS were today poring over the accounts of The Grosvenor House and Waldorf hotels after being called in last night following the collapse of rescue talks for their owner, Le Meridien.

The group has been hard hit by the disastrous effect on tourism of 9/11. Attempts to salvage Le Meridien with a cash injection of at least £150m by owner Guy Hands, were rejected by the major bank creditors.

Hands bought Le Meridien days before 9/11. He wrote off his investment earlier this year and effectively handed over control to the banks.

Now Le Meridien is being split up, with 11 UK hotels, starting with The Grosvenor and Waldorf, being put into administration by their landlord, the Royal Bank of Scotland. Lehman Brothers and Hyatt Hotels are to take over the 126 Le Meridiens outside Britain.

Observers expect management contracts for the UK hotels to be handed out to other hoteliers.