Press: RBS pulls sale of hotels for second time

The growing debt market crisis has forced Royal Bank of Scotland (RBS) to pull the sale of a 1.1 billlion pound package of hotel assets for the second time in two months, reported The Times newspaper. The 15 hotels, including the Waldorf Hilton and Cumberland hotels in London, the Park Inn at Heathrow and 11 other Hiltons, were to have been sold to Robson Asset Management (RAM), a new investment vehicle set up by Jeremy Robson, former head of principal finance at RBS, the newspaper said.

The postponement of the deal, due to have been completed last week, follows the collapse in June of a sale to Vector Hospitality, the real estate investment trust. Investor scepticism forced Vector to cancel a 2 bln stg flotation that would have funded the acquisition of 71 hotels worth 2.6 bln stg, including the RBS package, the newspaper said.