Hotelier challenges lender’s role in £94.5m UK hotel debt dispute
A Lebanese hotelier is challenging the appointment of administrators to a company owning two UK Hilton-branded hotels. The case is testing how far lightly regulated property lenders can go when borrowers default — with potential implications for South African investors in UK property.
A Lebanese hotelier is challenging the role of a lender in a £94.5 million UK hotel debt dispute. Boutros El Khoury purchased the Hampton by Hilton and DoubleTree by Hilton hotels in London and York, but was removed from the Waterloo hotel after 11 days due to interference with its operations. The lender, Cohort Lendco II, denied all allegations.
A London judge will decide the case. The dispute concerns the lender's actions in preventing El Khoury from buying the hotel, including a £1 million "exclusivity" payment and redirecting El Khoury into a formal process that delayed the sale. The case highlights the lack of regulation and oversight in UK property lending, with foreign investors potentially impacted. The ruling could set a precedent for how lenders interact with borrowers in the UK.
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