Le Meridien Hotels will today be given a temporary reprieve from the threat of administration, following reports that Royal Bank of Scotland (RBS) has agreed to extend the deadline on a £20million rental payment.
RBS, which owns 11 of Meridien's hotels, will give the company a further two weeks to make the repayment. The extension was granted after an agreement by the hotel group's creditor banks, led by Lehman Brothers to make an upfront payment of £4 million to RBS.
It is understood that RBS is likely to reduce the £80m annual rental bill after the collapse of the hotel trade this year due to the Iraq War and the Sars virus.