Rocco Forte Hotels to exit lease on Prague's Augustine Hotel, says FT

George Sell George Sell Uploaded 09 November 2012

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Czech Republic: Rocco Forte Hotels is reportedly exiting its lease of the 101-room Augustine Hotel Praha, due to its failure to keep up with rental payments on the property.

The Financial Times reported on November 7 that the company is to be given 30 days notice to leave the 5-star property after failing to reach a deadline to come to an agreement with the Luxembourg-based Waldeck Capital over a reduced rent. It is anticipated the hotel will be closed and a new management company appointed to operate it.

A spokesperson for Rocco Forte Hotels told Boutique Hotel News: "We still have a lease and we are still operating the hotel", but declined to comment further. The company has posted losses for the past two financial years and has a total net debt of €108 million (US$137 million).

www.roccofortehotels.com

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