UK hotel operator Real Hotel Company (RHC) announced on Wednesday that it will exit its UK franchising operations and warned that its full-year results will fall short of management's expectations. The company said that its UK mid-market hotels have under-performed, adding that it has already identified under-performing hotels for disposal. Two hotels are expected to be sold by the year-end. The company also said its leisure business has been 'disappointing' in the second half of the year.
UK hotel operator Real Hotel Company (RHC) announced on Wednesday that it will exit its UK franchising operations and warned that its full-year results will fall short of management's expectations. The company said that its UK mid-market hotels have under-performed, adding that it has already identified under-performing hotels for disposal. Two hotels are expected to be sold by the year-end. The company also said its leisure business has been 'disappointing' in the second half of the year.
RHC will transfer its UK franchising operations, covering the Comfort, Sleep, Quality and Clarion brands, to Choice Hotels International on 31 January. This follows RHC's announcement on 31 October 2006 that it was terminating its franchise agreement with Choice in Continental Europe.
The company also launched its new brand: purple hotels. The first two hotels that will carry the new label are at Braintree, Essex, and at Glasgow Airport. A further nine hotels, currently operating under the Sleep Inn banner, will convert to the new brand on 31 January 2008.
The Real Hotel Company owns, leases and manages 65 hotels throughout the UK, France, Germany and Belgium.
