Hotel site up for sale following developer administration

A Torquay hotel development site has been put onto the market following the administration of its developers.

The Palm Court Hotel site, which occupies a prime seafront position in the popular holiday town, was owned by KC1 Ltd, part of Newton Abbot-based property firm Riviera Group Ltd. KC1 fell into administration owing £3.1 million to HSBC.

The site, which has planning for a large commercial building, was then put onto the market, and hotel giant Travelodge has confirmed that is is interested in purchasing it.

Steve Parrock, chief executive of Torbay Development Agency, said that the new owner could consider also buying neighbouring buildings to enlarge the development. Parrock said that he had already met 'interested bidders' who intended to develop a hotel on the site in line with the existing planning approval.

“There will be a comprehensive redevelopment of the building which I think is going to be beneficial,” he said.

However, Ross Connock, of Price Waterhouse Cooper, who is acting as administrator to KC1, said, “We are having detailed talks with a number of parties, but it has not been sold. We are closer to completing the deal but no contracts have been exchanged.”

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