ONE of South East Cornwall’s best-known hotels is in financial crisis.

Specialist administrators have been appointed to run the 37-bedroom Fowey Hotel.

They insist it’s business as usual - and plan to honour all existing bookings.

And they say they are hopeful of securing the long-term future of the business and its around 40 employees.

The Fowey Hotel is part of the West Country-based Richardson Group, operating five hotels including The Grand Hotel in Torquay, The Royal Beacon Hotel in Exmouth, The Falmouth Hotel in Falmouth and The Metropole Hotel in Padstow.

All have either three or four stars - the Fowey Hotel has four - and are notable for their prominent seaside locations, period architecture and award-winning dining. The Fowey Hotel includes the 2-AA Rosette Spinnakers restaurant.

Mark Boughey and Matthew Wild from RSM Restructuring Advisory LLP have been appointed joint administrators.

They say all five hotels will continue to trade on a business as usual basis while they assess the current financial position and available options.

Mark Boughey said: ‘We appreciate that there will be a significant degree of concern and uncertainty for staff, guests and suppliers as a result of the companies entering administration.

‘I am pleased to confirm that we will continue to trade all five hotels while we assess how best to proceed and we will endeavour to update all stakeholders as soon as we can.

‘All of the hotels offer enviable locations, architecture and facilities, so their rooms are in high demand from both existing and new customers.

‘Whilst things are at an early stage, we are therefore hopeful that a long-term future for of all the hotels can be secured.’

He said customers and suppliers should raise any questions or enquiries directly with the hotel or their booking agent.

A spokesman added: ‘The hotels continue to trade and we plan to honour all existing bookings.

 ‘The intention is to continue to trade until a resolution is found.’

The Fowey Hotel was purpose-built in 1882 as the railways expanded in Cornwall. It has links to Daphne Du Maurier and Wind in the Willows author, Kenneth Grahame, some of whose letters to his son Alistair are displayed in the hotel.

Used as a convalescent home during World War One, and as a base for US Naval officers in World War Two, the hotel was bought by Keith Richardson in 1996.