Real Hotel Company
Real Hotel Company was a British hotel operator and franchising business that entered administration in 2009.
Last updated August 26, 2026
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Overview
Real Hotel Company was a British hotel company whose origins dated to 1877, when it was established as the Birmingham Coffee House Company. Over more than a century, the business changed its corporate identity several times as its activities developed from ownership of individual Birmingham hotels into a broader hotel operating and franchising group. In the early twentieth century, the business became associated with the Arden and Cobden Group. At that stage it owned three Birmingham properties: the Arden Hotel, the Cobden Hotel and the Norfolk Hotel. A major change came in December 1985, when entrepreneur Henry Edwards acquired the company. In 1986, he floated it on the London Stock Exchange under the name Friendly Hotels PLC, giving the business a public-company structure and a clearer hotel-sector identity. The company’s most significant expansion phase followed its relationship with Choice Hotels International, a United States-based hotel group. In 1996, Friendly Hotels became a Choice franchisee and converted its Friendly Hotels and Friendly Stop Inns to Choice brands, including Comfort Inn and Quality Hotel. The relationship expanded beyond individual property franchising. In 1996, the company obtained the master franchise to develop Choice brands in the United Kingdom and Ireland. In 1998, it received a further master-franchise mandate covering the Comfort, Quality, Clarion and Sleep Inn brands in Continental Europe, excluding Scandinavia. This positioned the company not only as a hotel operator but also as a regional developer of internationally recognized hotel brands. The corporate relationship with Choice later became uncertain. In June 2001, Choice Hotels International disclosed that it was discussing the sale of its interest in the company with potential buyers. To emphasize strategic alignment with Choice, Friendly Hotels changed its name to CHE Group PLC in August 2001. The prospective sale discussions ended in February 2002 without a buyer, after which Choice wrote off its interest in the company. The business subsequently pursued a new identity. In October 2007, it announced the launch of Purple Hotels and changed its corporate name to The Real Hotel Company. The rebranding occurred during a difficult trading period. The economic downturn contributed to substantial pressure on the company, which moved into losses in 2007. Its financial position deteriorated further, and trading in its ordinary shares on the Alternative Investment Market was suspended on 13 January 2009. The Real Hotel Company entered administration on 21 January 2009, with Shay Bannon and Antony Nygate of BDO Stoy Hayward appointed as administrators. The administration marked the effective end of the company as an operating hotel group. Assets and properties were subsequently disposed of, with the Quality Hotel in Perth reported as the final property sold, in February 2011. The company is therefore best understood as a defunct British hotel operator and franchising enterprise whose history spans hotel ownership, public-market expansion, international brand development and a later insolvency.
History
Real Hotel Company originated in 1877 as the Birmingham Coffee House Company. During the early twentieth century it developed into the Arden and Cobden Group, with a portfolio of three Birmingham properties: the Arden Hotel, Cobden Hotel and Norfolk Hotel. In December 1985, entrepreneur Henry Edwards acquired the business. The following year it was floated on the London Stock Exchange as Friendly Hotels PLC. The public listing accompanied the company's development as a hotel operator and provided the corporate platform for subsequent expansion. A decisive strategic shift occurred in 1996, when Friendly Hotels became a franchisee of Choice Hotels International. The company's Friendly Hotels and Friendly Stop Inns were converted to the Comfort Inn and Quality Hotel brands. That same year, Friendly Hotels secured Choice's master franchise for the United Kingdom and Ireland. In 1998, its mandate expanded to Continental Europe, excluding Scandinavia, for the Comfort, Quality, Clarion and Sleep Inn brands. These arrangements made the company an important regional vehicle for developing Choice's hotel concepts, in addition to its direct hotel activities. Choice's investment relationship with the company became the subject of sale discussions in 2001. In June of that year, Choice disclosed that it was speaking with potential purchasers about selling its interest. Friendly Hotels changed its name to CHE Group PLC in August 2001 in an effort to demonstrate closer strategic alignment with Choice. The negotiations ended in February 2002 without a transaction, and Choice subsequently wrote off its interest. The company later sought to establish a new consumer-facing identity. In October 2007, it announced Purple Hotels and adopted the name The Real Hotel Company. The timing was difficult: the economic downturn affected trading, and the company moved into losses during 2007. Financial pressure continued into 2009. Trading in its ordinary shares on the Alternative Investment Market was suspended on 13 January 2009, and the company entered administration on 21 January 2009. BDO Stoy Hayward's Shay Bannon and Antony Nygate were appointed as administrators. The company ceased to operate as a going concern in its former form, while its properties were disposed of through the administration process. The Quality Hotel in Perth was identified as the final property sold, in February 2011. Its history therefore covers the transition from a locally concentrated British hotel owner to a listed hotel group, an international franchise and master-franchise operator, and ultimately a failed hotel business.
- 2011
Final reported property disposal
[1]The Quality Hotel in Perth was sold as the final property disposed of after the administration.
- 2009
Administration begins
[1]The company's AIM-traded ordinary shares were suspended on 13 January, followed by administration on 21 January.
- 2007
Purple Hotels introduced
[1]The company launched Purple Hotels and adopted the name The Real Hotel Company.
- 2001
Corporate name changes to CHE Group PLC
[1]Friendly Hotels changed its name to CHE Group PLC while Choice explored the sale of its interest.
- 1998
Continental European master franchise expanded
[1]The company obtained a master franchise covering Comfort, Quality, Clarion and Sleep Inn in Continental Europe, excluding Scandinavia.
- 1996
Choice Hotels franchise relationship begins
[1]Friendly Hotels became a Choice Hotels International franchisee and received the master franchise for Choice brands in the United Kingdom and Ireland.
- 1986
Public flotation as Friendly Hotels PLC
[1]The company was floated on the London Stock Exchange under the Friendly Hotels PLC name.
- 1985
Acquisition by Henry Edwards
[1]Entrepreneur Henry Edwards acquired the company in December.
- 1877
Business founded as Birmingham Coffee House Company
[1]The company was established in Birmingham under the name Birmingham Coffee House Company.
Products and positioning
A British hotel operator and regional hotel-brand franchise developer, combining owned or operated accommodation with franchise and master-franchise activities.
Hotel brand · 1996
Comfort Inn
Comfort Inn was one of the Choice Hotels International brands adopted by the company after it became a Choice franchisee. Real Hotel Company used the brand across properties in its operating and franchise network and later held master-franchise development rights for it in the United Kingdom, Ireland and parts of Continental Europe.
Hotel brand · 1996
Quality Hotel
Quality Hotel became part of the company's Choice-branded portfolio after the conversion of Friendly Hotels and Friendly Stop Inns. The brand remained associated with the company through its later administration, with the Quality Hotel in Perth reported as the final property disposed of in February 2011.
Hotel brand · 1998
Clarion
Clarion was among the Choice Hotels International brands included in the company's 1998 master-franchise rights for Continental Europe outside Scandinavia. The available reference identifies the development mandate but does not provide a detailed account of individual Clarion properties.
Hotel brand · 1998
Sleep Inn
Sleep Inn was included in the group of Choice brands that Real Hotel Company was authorized to develop in Continental Europe, excluding Scandinavia, under the 1998 master-franchise arrangement.
Hotel brand · 2007
Purple Hotels
Purple Hotels was a new hotel brand announced by the company in October 2007 as part of a later repositioning. Its launch coincided with the corporate change to The Real Hotel Company and preceded the company's entry into administration.
Brand decisions
2009
Suspend trading and enter administrationOtherBackground
The economic downturn and losses placed the company under severe financial pressure.
Action taken
Ordinary shares were suspended on the Alternative Investment Market on 13 January, and the company entered administration on 21 January.
Aftermath
Administrators were appointed and the company's hotel properties were subsequently sold, with the Quality Hotel in Perth reported as the final disposal in 2011.
2007
Launch Purple HotelsProduct launchBackground
The company was seeking a new identity after the earlier CHE Group period and announced the initiative during a period of worsening economic conditions.
Action taken
It introduced Purple Hotels and changed its corporate name to The Real Hotel Company.
Aftermath
The rebranding did not prevent the company from sliding into losses and later entering administration.
1998
Expand master-franchise rights into Continental EuropeStrategyBackground
Following the 1996 UK and Ireland arrangement, the company pursued a broader geographic role for Choice Hotels brands.
Action taken
It received rights to develop Comfort, Quality, Clarion and Sleep Inn across Continental Europe, excluding Scandinavia.
Aftermath
The agreement broadened the company's international franchise scope, although the available material does not quantify the resulting property network.
1996
Adopt Choice Hotels brands and obtain UK and Ireland master franchiseStrategyBackground
The company was expanding beyond its earlier Friendly Hotels identity and entered a franchise relationship with Choice Hotels International.
Action taken
It converted Friendly Hotels and Friendly Stop Inns to Comfort Inn and Quality Hotel branding and secured master-franchise rights for Choice brands in the United Kingdom and Ireland.
Aftermath
The relationship later expanded to selected Continental European markets and became central to the company's operating model.
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