Le Meridien may face administration

Luxury hotels group Le Meridien could be put into administration unless a financial rescue plan is struck this week, it was reported today.

Banks are thought to have set a deadline of Friday for proposals to refinance the group, which runs London’s Grosvenor House and Waldorf hotels.

That is also three days before a key rental payment of £20m (€28m) is due to Royal Bank of Scotland, which owns 12 of the group’s biggest hotels following a sale and leaseback deal in 2001.

Le Meridien, which has 135 hotels in 56 countries, was bought for £1.9bn (€2.7bn) two years ago by a consortium put together by Guy Hands, then head of the principal finance unit at Japanese bank Nomura.