CB Richard Ellis Hotels is being sued for £7.5m in damages over valuation advice that it gave on a 2005 hotels acquisition.
A group of Danish investors claims that CBRE Hotels was negligent with regard to valuation reports produced for the investors’ lenders West Bromwich Building Society and Alliance & Leicester for the £45m acquisition of eight Ibis hotels from London & Regional.
The investors claim that CBRE Hotels overvalued the buildings by £5.1m and is suing for that sum, plus purchase costs of £2.4m.
A spokesman for CBRE Hotels said: “We acknowledge that a claim is being made at the High Court against us on advice that was provided in 2005 over the valuation of a hotel portfolio. CBRE Hotels strongly denies the claim and is vigorously contesting it.”
The eight hotels are let to Ibis – a budget brand owned by French hotelier Accor – on 20-year leases.
They are in Lincoln; Barlborough and Chesterfield in Derbyshire; Wickersley in South Yorkshire; Shipley in West Yorkshire; Cardiff; Fulwood in Lancashire; and Wellingborough in Northamptonshire.
