The owner of a luxury hotel in Cheltenham that has fallen into administration has blamed the collapse on Russian banks, including state-owned Otkritie.
Lethendy Cheltenham Limited, which trades as the DoubleTree by Hilton Cheltenham, was placed into administration on May 19. It is one of four hotels owned by Lethendy Estates - a UK-based holding company that owns and operates hotels around the country under different brand names.
The company's portfolio includes Double Tree by Hilton Elstree, Double Tree by Hilton Stoke on Trent, Double Tree by Hilton Cheltenham and Holiday Inn Bolton. Lethendy Estates is also part of the MF Trust, the settlor of which is Russian former billionaire and Vladimir Putin critic Dr Boris Mints.
The company said it was forced to appoint administrators after Russian banks sought to impose land registry restrictions on Hilton Cheltenham’s property, which it claims had “no connection” to Lethendy Estates. The hotel operator also said the banks had been “unwilling” to remove the “unreasonably imposed” restrictions out of court.
“We are saddened that the actions of the sanctioned Russian Bank Otkritie and Russian Bank Trust have resulted in the DoubleTree by Hilton Cheltenham hotel being placed into administration,” a spokesperson for Lethendy Estates said.
“These actions of the Russian banks led to our lender demanding early repayment of previously issued loans and the placement of a profitable and successful Cheltenham hotel into temporary administration."
Lethendy Estates claims the “aggressive actions” of the Russian banks are due to Dr Mints' political views. The businessman and philanthropist and his family live in exile and split their time between London and a castle in Scotland.
A spokesperson for Lethendy Estates added: “Dr Mints - a long-standing critic of Putin and a vocal opponent of his illegal and barbaric invasion - has initiated charity programmes in aid of Ukrainian refugees.”
Lethendy Estates is currently hosting Ukrainian war refugees, free of charge in its properties in Elstree and Bolton; the Cheltenham hotel was set to host a further tranche of refugees and provide them safe haven.
The spokesperson added: "This latest action amounts to yet another avenue of oppression from the Russian state levied against Ukrainians – in Ukraine and now abroad – as well as putting a profitable hotel into administration.
"We are carefully considering the situation and further steps; meanwhile, Lethendy Estates is committed to ensuring that all refugees that are currently residing in properties in Elstree and Bolton continue to receive the utmost level of support."
According to administrators Quantuma, the hotel is currently trading profitably and will continue to be run by the administrators while they look for a buyer.
