Fears grow for Quality Hotel group

Fears are growing for the future of Wolverhampton's Quality Hotel after its parent company's shares were suspended on the stock market this afternoon.

The landmark hotel, on the Penn Road, is run by Real Hotel Company. It also runs Quality Hotels in Pinfold Lane, Penkridge, Walsall and Birmingham as well as the Purple Hotel at Star City in Birmingham.

Today the company said it had asked for its shares to be suspended immediately on the AIM smaller stock market in London.

The move was made "pending clarification of the company's financial position," said a Real Hotel statement. The group said a further announcement would be made as soon as possible.

The Penn Road hotel is a popular business venue and hosts weddings and themed music nights. It had been planning an expansion.

The Real Hotel Company owns around 58 hotels in the UK and Europe. It owns the Comfort Inn budget chain, Clarion luxury hotels and the Stop Inn travel hotels, as well as a dozen sites in Germany and France.

Income for the hotel chain was down 34 per cent in the first seven days of January.