Licence allows hotel business to continue trading

Kitley House Hotel Ltd which traded from Kitley House in Yealmpton near Plymouth in South Devon, has gone into administration. Ian Walker & Christopher Norman from the Exeter office of leading corporate rescue and recovery specialists Begbies Traynor have been appointed as Administrators.

The hotel is a listed Grade One building over 500 years old, and features in many famous historical works on English Country Houses. It has been tastefully adapted to offer luxury guest accommodation, and its gardens, which are popular with walkers, bird lovers and dog owners, are classified as a Devon County Wildlife Site in the South Devon Area of Outstanding Natural Beauty.

Kitley House has developed a niche over the past few years as a popular venue for weddings and other celebrations, including themed weekends, and as a base for exploring the South Hams, maritime Plymouth and the rest of the West Country.

It has however suffered greatly from the downturn in the leisure industry which is being widely experienced in Devon and Cornwall. The Administrators will continue to trade the hotel as a going concern, working to find a buyer for the business and save around 40 jobs. Customers who have paid deposits are recommended to contact the hotel direct, who will endeavour to honour all bookings.

Andrew Huckerby, General Manager and Director of the new Kitley House operating company Peninsular Hospitality Hotels Ltd said: "Whilst the current status of the hotel is obviously unsettling for customers and staff alike, tremendous effort has been expended to ensure that the business continues to operate to its consistently high standards of service delivery with its existing team."

Ian Walker, Partner at Begbies Traynor, added, “This is a fine hotel with a great deal of potential as well as a good reputation in the luxury hotel market. We will be working extremely hard to find a buyer for the business so that it can continue to serve guests and contribute to the south west’s economy.”