Golden Tulip Hotel in the Netherlands

Problems in the Golden Tulip hotel chain

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Golden Tulip hotel chain, which is known primarily as a hotel chain from the Netherlands, announced serious financial problems, according to Handelsblad. On Tuesday, representatives of Golden Tulip requested deferral of payments from their creditors.

Companies, which are unable to make payments on bank loans, have the right to request a postponement of payment, in order to try gain time. Golden Tulip hopes for successful negotiations with interested parties, during which it looks to explore the possibility of a resumption of lending.

According to Hans Kennedy, the chairman of the board of directors of Golden Tulip, the world financial crisis has put its imprint on the work of his company. Last year, Golden Tulip made massive investments into the opening of new hotels. Today, the room occupancy issue faces the company.

It is expected that negotiations will be attended by the representatives of investment fund H2 Equity Partners - the main creditor of Golden Tulip, as well as representatives of hotel chains Apollo hotels. An optimal variant of solving the difficult situation, according to the representatives of Golden Tulip, is continuation of activities in reduced form.

Management of Golden Tulip has high hopes for future negotiations. According to Hans Kennedy, a possible alliance with Apollo hotels and H2 Equity Partners will enable the Dutch hotel chain to look in the future with optimism.

Long time Golden Tulip had a reputation of dynamically developing hotel chain. Appeared on the market of the Netherlands in the early 60-ies of the last century with 6 hotels, in 2005, Golden Tulip became one of the largest hotel chains in Europe with more than 700 hotels in Holland and in other countries. One part of Golden Tulip Hotels operates under the terms of franchise; another part is the property of hotel chain.

Date: 03/04/2009