Key facts
- The Stafford London, a five-star hotel, has been served a winding-up petition by HMRC.
- BHL Global, the owner of The Stafford Collection, also received a winding-up petition.
- The hotel owner's turnover decreased by 5% to £30.5m in the year ending December 2024.
- BHL Group cited rising costs and a competitive market as reasons for financial pressure.
The Stafford London, a luxury five-star hotel in Mayfair, has been served a winding-up petition by HM Revenue and Customs (HMRC) over alleged unpaid tax debts. The hotel's owner, BHL Global, which also operates the Norma restaurant and Lympstone Manor hotel, has also received a petition from the tax authority.
A winding-up petition is a formal legal process initiated against a company that owes money and has failed to settle its debts, a common measure by HMRC for outstanding tax bills.
BHL Global reported a 5% decrease in turnover to £30.5 million for the year ending December 2024. The company attributed this decline to an increasingly competitive London luxury hotel market, alongside rising wage, food, and utility costs, and a shortage of skilled labor in the hospitality sector. The Stafford itself was purchased for £77.5 million in 2009.
This action follows the recent departure of The Stafford's managing director, John McLean, after just one year in the role. The El Sharkawy family, Egyptian property and hospitality magnates, own BHL Global.
In January, the Hotel Cafe Royal, another prominent West End venue, also faced a winding-up petition from HMRC. HMRC stated they adopt a supportive approach to customers with tax debts and only resort to winding-up petitions after exhausting all other options to safeguard taxpayer funds.