Five-star Mayfair hotel hit with HMRC winding-up petition

The Stafford London, a prestigious 107-room Mayfair hotel, has been confronted with a winding-up petition by HMRC, shortly after its managing director departed unexpectedly. The petition, served by HMRC, stems from a filing to the High Court. A winding-up petition is a legal process employed by HMRC against companies that owe money and have not settled their debts.

BHL Global, the hotel's owner, also faced a similar petition from HMRC. BHL Global's portfolio includes The Stafford Collection, which comprises The Stafford hotel, Norma restaurant, and Lympstone Manor, a Devon luxury hotel. Both The Stafford and Lympstone Manor boast Michelin-starred restaurants operated by renowned chef Michael Caines.

The tax issue arose just months following The Stafford's managing director, John McLean, leaving the position after merely a year. McLean previously worked as a chef at The Stafford and held managerial roles at The Kensington, Brown's hotel, and The Lanesborough, also in Mayfair. The Stafford, dating back to the 17th century, boasts some of London's oldest wine cellars.

It was purchased by BHL, formerly Britannia Hospitality, for £77.5 million in 2009. BHL's profitability declined by five percent to £30.5 million in the year ending December 2024. The hotel group attributes its challenges to increased competition in the London luxury hotel market, rising expenses for wages, food, utilities, and a shortage of skilled labor.

In January, another West End luxury hotel, Hotel Cafe Royal, was also targeted by an HMRC winding-up petition. HMRC spokesperson stated that they only issue winding-up petitions after exhausting all other options to protect taxpayers' money. The Stafford hotel declined to comment, and BHL Group could not be reached for comment.