Balfour and CDC may lose £36m deals after hotelier collapse

Balfour Beatty and Irish firm CDC Group have been hit by the collapse of buy-to-let hotelier GuestInvest, after administrators mothballed three hotel schemes in London worth a combined £35.5m

Balfour's £20m Whitbread Brewery scheme in the City of London for GuestInvest has ground to a halt, along with CDC Group's £11m deal to refurbish The Nest in Bayswater and a £4.5m fit-out of Jones Hotel in Notting Hill.

Heery International, a Balfour Beatty subsidiary, was awarded The Brewery contract in July 2007. The firm was midway through the restoration and conversion of the listed brewery in Chiswell Street into a 5 star, 220-bedroom hotel.

CDC Group was close to finishing The Nest, a 157 bedroom hotel. The Jones Hotel was also close to completion.

GuestInvest went into administration after the troubled HBOS, which owned 19.9% of the firm, pulled its backing earlier this month.