Menzies Hotels has reportedly gone into administration after a decision by Lloyds to restructure £230m of debt in the chain. Robert Tchenguiz’s investment vehicle R20 bought Menzies at the end of 2006 for £180m, which included a debt package of £225m supplied solely by HBOS. According to The Times, holding company Piccadilly Hotels was placed in KPMG’s hands last week and the 16 Menzies properties immediately sold to a management buyout team in a pre-pack deal. Six budget hotels leased by Travelodge will be sold “in due course”. The restructure of Menzies, which was founded in 1992 by former Thistle Hotels executive Nick Menzies, is the latest in a growing list of property deals backed by HBOS - which merged with Lloyds in 2008 - that have come under review.

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