MORE than £17m is owed by a Bournemouth hotel fighting for its survival, new documents have revealed. 

Administrators were called in by the High Court to sort out the finances of The Queens Hotel & Spa in Meyrick Road, East Cliff, last month. 

Gordon Hotels Ltd, which owns the hotel, took out a loan of £8.5m from the specialist bank Cynergy in November 2022 after purchasing it from the former shareholders earlier that year. 

However, Cynergy is now owed £9.1m as a secured creditor, but the administrators expect there will not be enough money left to pay it back in full.

Bournemouth Echo: The Queens Hotel and Spa in Meyrick Road

Meanwhile, unsecured creditors including traders, HMRC, and 4D Hotels are owed £8.249m and there is not enough money for them, too. 

According to joint administrators Philip Dakin and Janet Burt, of London-based Kroll Advisory, trading performance at the hotel has been “below expectations”. 

Read more: Bournemouth hotel closes down owing nearly £1million

They said: “The company has inherited substantial amounts of legacy creditors, which were in part due to the restrictions brought about by the Covid-19 pandemic, the effects of which were still impacting trade. 

“The cost-of-living crisis was affecting booking volumes and inflation had increased day-to-day costs. As a result of these factors, the company was experiencing cash flow difficulties by mid-2023.” 

HMRC has also submitted claims of £864k that is, too, not expected to be fully repaid at this stage. 

According to the company’s books and records, unsecured creditors are owed £8.249m  

The four star hotel underwent an extensive £2.6m refurbishment in 2020 but in the last two years, “significant” turnover in general managers has meant the business has struggled to run efficiently. 

Inflation, supply cost rises, the cost-of-living crisis, legacy debt and a decrease in staycations are all being blamed for an “erosion” of profits.  

Listed unsecured creditors includes BCP Council (£23k), Meyrick Estates (£21k) and Ferndown-based insurance brokers Lansdowne Woodward (£77k). 

The hotel continues to trade while a buyer is found. To continue trading, Cynergy has provided £450k to contribute towards paying the 44 staff members. 

Agents have already been tasked with selling the hotel and a ‘teaser’ was sent to 815 interested parties around a fortnight after the administration process began. 

The administrators added: “The sale process is ongoing and further details cannot be shared at this point in order to avoid prejudicing the outcome.” 

Companies House says Gordon Hotels Ltd's accounts are overdue, with directors listed as Georgina and Timothy De Glanville.