Savoy under pressure to polish sales to avoid breaching loans

 
Kasmira Jefford
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THE OWNERS of the Savoy Hotel have warned that it could be at risk of breaching loan covenants if trading does not improve.

The five-star hotel on the Strand, which is owned by Prince Alwaleed bin Talal of Saudi Arabia and Lloyds Banking Group, made a £53.5m pre-tax loss in 2012 compared with £49.6m in 2011, accounts filed last week by its owner Breezeroad Limited show.

The company said that “material uncertainty” over whether it will be able to meet all its loan payments “cast significant doubt” over whether it could continue as a going concern.

However it insisted that even if covenants were breached, the hotel would be able to negotiate a solution with its lenders.

In a statement yesterday Lloyds said it remained fully supportive of the management the hotel.

“We are confident that the business will continue to trade profitably and that it will be able to meet all creditor payments as they fall due,” a spokesperson said.