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Hotel owners going into administration

Hello

Sorry if this is in the wrong area but any information would be greatly appreciated.

My girlfriend and I have booked a hotel for our wedding next August. We have paid £500 deposit and a large number of our family members have booked hotel rooms for the day.

Recently the owners of the hotel have went into administration. They are a building company and I am assuming this is because of the downturn in the building market. The hotel is booked solid for weddings next summer, so I assuming the hotel should be turning a profit.

What are our rights with regards to this? ie if the the hotel goes into administration do we lose our money? Can we do anything at the minute?

Thanks
Eoin

Comments

  • visidigi
    visidigi Posts: 6,622 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    How did you pay your deposit...
  • visidigi wrote: »
    How did you pay your deposit...

    Cash.........
  • peachyprice
    peachyprice Posts: 22,346 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If the hotel in in administration they will be looking at ways to keep the business up and running so there should be no change to bookings already made. They will try to sell it on as a going concern, so your bookings are valuable to them.

    You only need to worry if it goes into liquidation. Depending on how you paid for your deposit you may or may not lose it. If you paid by credit card you can claim it back from the CC company, if you paid cash/debit card/cheque you would become an unsecured creditor and may get a small percentage back.

    Hopefully they administrators will save the hotel and all will be well for your big day.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • visidigi
    visidigi Posts: 6,622 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Cash.........

    oh :(

    Debit or credit card deposits for rooms etc will be covered under the card policies (although if under £100 some debit companies can be difficult).

    Cash, if they have gone under would make you an unsecured creditor - I would keep in contact and see what the deal is, try to find out if an administrator has been appointed and work with them on it.
  • Thanks for your help!

    So of our guest would have paid by card so I am hoping it will be OK for them.

    I am really thinking worse case scenario here, I think the hotel should be fine, as I said it was totally booked for the summer, we were lucky to get our date!
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    If you have a booking and the hotel is booked solid for the summer, the administrators will be very keen to keep the business going - I doubt you'd even realise if you hadn't been told (if you see what I mean!)
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You didnt happen to take out wedding insurance did you?
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • ShaneUK
    ShaneUK Posts: 1,099 Forumite
    Part of the Furniture Combo Breaker
    I note that so far you have only paid a deposit? How much more do you need to pay them, and will you be paying that cash, or credit card? If you can, ensure that you pay at least £100 on a Credit Card in case the worse does happen.
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ShaneUK wrote: »
    I note that so far you have only paid a deposit? How much more do you need to pay them, and will you be paying that cash, or credit card? If you can, ensure that you pay at least £100 on a Credit Card in case the worse does happen.

    Erm thread is nearly 2 months old and OP hasnt returned to update us :(
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • wealdroam
    wealdroam Posts: 19,180 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ShaneUK wrote: »
    I note that so far you have only paid a deposit? How much more do you need to pay them, and will you be paying that cash, or credit card? If you can, ensure that you pay at least £100 on a Credit Card in case the worse does happen.
    Just £1.00 on a credit card will be enough to protect the whole amount.

    But as the thread is a few months old, the OP may not see this. ;)
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