Croydon’s most historic hotel has gone into administration while confusion surrounds a second equally famous venue.
The Aerodrome Hotel in Purley Way has been taken over by administrators PriceWaterhouseCooper with a view to sell the property.
And the future of Addington Palace Hotel, which is owned by the same group as the Aerodrome, remains unclear as it is listed as under receivership by Companies House, despite denials from its general manager.
John Power, chairman of owners Westmead Business Group, which owns both hotels, said the Aerodrome was very profitable but the economy forced them to sell to fund “restructuring” within the business.
He said: “It is not being sold under duress. It is being sold as a profitable business.
“At this particular moment in time what we wanted to do was to get the money back that we have spent as quickly as possible.
“It is impossible to get banks to fund operations.”
“Everyone has got problems.”
David Chubb, partner and joint administrator, PricewaterhouseCoopers LLP said: “Aerodrome Hotel Limited is the operating company for the 109-bedroom, historic landmark hotel located in Croydon.
“The company has suffered as a result of the current economic challenges facing the hotel industry and, having run out of alternative options, sought the protection of administration.
"The administrators intend to trade the hotel while sale options are progressed.”
Mr Power denied the Addington Palace Hotel was in receivership, claiming it is and will always be owned by Addington Palace Limited.
But Companies House, a registry of corporate information, said the company was in receivership under rescue company Begbies-Raynor, who were unable to confirm the hotel’s situation.
Mr Power was quick to reassure the public any bookings or events planned for the Aerodrome Hotel would still go ahead.
The Aerodrome Hotel was designed in art deco style as an integral part of the Croydon Airport complex and was opened in 1928.
Mainly catering for the passengers and airline crews, a plethora of famous people stayed there including King George VI, Amy Johnson, Douglas Fairbanks, Mary Pickford and Charlie Chaplin.
In the 1950s Heathrow Airport gained momentum against Croydon, eventually forcing the closure of the terminal in 1959 and with it the leisure market for the hotel.
The acquisition in March 2002 by the Westmead Group, under Aerodrome Hotel Limited, heralded a new era for the hotel, with an extensive refurbishment programme.
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