June 15 (Bloomberg) -- Royal Bank of Scotland Group Plc, Britain’s biggest government-owned bank, has taken control of 42 Marriott-branded hotels across the U.K and appointed Ernst & Young as receivers for the owner of the hotels.
The Edinburgh-based bank named Ernst & Young as receivers for Professional Ventures Corporation, the owner of the portfolio of hotels, David Gaffney, a spokesman for the bank, said by telephone yesterday.
RBS has assumed control of the 1 billion-pound ($1.64 billion) property portfolio after failing to obtain a debt-for- equity restructuring of one of its largest real estate loans completed in the property boom, the Financial Times reported, without saying where it got the information.
The properties were acquired from the bank for about 1.1 billion pounds in 2007, and RBS owns about 700 million pounds of the debt that was used to finance the acquisition in a syndicated loan structure, the FT said. Ernst & Young will appoint a board of directors to run the properties and prepare a sale, the newspaper said.
Marriott International Inc. will continue to operate the hotels, and RBS’s decision will not affect customers, suppliers or staff at the hotels, Ernst & Young said in an e-mailed statement last night.
A message left at the Marriott news center number in the U.S. outside of office hours last night was not immediately returned.
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