Business as usual for Radisson Blu PE despite liquidation

The Rezidor Hotel Group will continue to operate and manage the Radisson Blu Port Elizabeth, despite liquidation proceedings being brought against  the hotel’s owner, Auspex Hotels and Leisure, according to a statement released by the Radisson Blu Hotel Port Elizabeth.

“We have taken note of the liquidation application brought against Auspex Hotels and Leisure, owner of the Radisson Blu Hotel Port Elizabeth, by ABSA. However, we would like to emphasise that this liquidation matter is a shareholder issue, and it does not affect the hotel’s day-to-day operations. The hotel operation is profitable, and will thus remain open under the Radisson Blu brand and management,” said Andrew McLachlan, Carlson Rezidor’s Vice President of Business Development  for Africa and the Indian Ocean Islands.

A press briefing was held  by the hotel on September 3,  to put into context a newspaper article entitled ‘Radisson in the Red’, which appeared in the PE Herald on August 31.  The meeting also reiterated that the hotel remained open for business and day-to-day operations had not been affected.

“The article ‘Radisson in the Red’ which appeared in the Herald was not comprehensively researched and caused unnessecary alarm,” said a statement by Radisson Blu.

The hotel’s ownership currently rests with the Industrial Development Corporation (IDC), ABSA,  and a number of private sectional title investors.

“In the court order founding affidavit,  as submitted by ABSA Bank, the terms of reference are noted and in particular treat the application matter as urgent with a specific clause requesting a deviation from Rule 6. This deviation application, on behalf of the IDC and ABSA,  specifically requests the court that the business of the hotel continues without any interruption,” continued the statement.

The deviation application notes: “The Radisson Blu enjoys good occupancy rates and seems able (other than its obligations to ABSA, IDC and the investors) to trade on a sustainable and cash flow positive basis.”

“It is absolutely critical, and the interest of the respondent’s employees and creditors, that the business operations of the respondent be preserved and that any disruption of its business be kept to an absolute minimum,” continued the application.

“The commitment by ABSA, IDC and investors to find a rapid solution to what is essentially a shareholder matter is without question. In addition the three aforementioned parties have all passed a vote of confidence in the existing management and  hotel operations to continue as business as usual  whilst the matter is resolved,” said the statement by the Radisson Blu.

“The Radisson Blu would like to once again stress that it is business as usual and that it will continue to provide quality services and facilites to its patrons , suppliers and key stakeholders,” concluded the statement.