THE new owner of 13 hotels previously run by the collapsed Swallow hotels group is considering putting the sites back up for sale.

REIT Asset Management last night admitted that selling the hotels it acquired from the troubled London and Edinburgh Swallow Group last year was one of a number of options now being considered.

However, the worldwide property investment group said the more likely outcome of the review would be to invest heavily in the portfolio, which includes five hotels in the North-East and one in North Yorkshire.

REIT partner Kevin McGrath said the group was considering all options.

"We are going into the next stage where we either sell the assets or run them as they are now or retain the assets and invest in them," he said.

"I suspect it will be the latter. We won't just not do anything. We will explore the first option, but if there is nobody kicking the door down then it won't happen."

The Swallow Group, the parent company of Swallow hotels, called in administrators in September last year. In November, REIT acquired the business and assets of 13 of its hotels with a combined value of about £70m.

These included the Eden Arms Hotel, in Rushyford, County Durham; the Stockton Swallow Hotel; the Three Tuns Hotel, in Durham City; the Swallow Newcastle Gateshead; the Imperial Hotel, in Newcastle; and the St George Hotel, in Harrogate, North Yorkshire

The portfolio was also made up of hotels in Northumberland, Cumbria, Dundee, Glasgow, Suffolk, Essex and Preston.

At the time, Mr McGrath pledged to invest heavily in the portfolio, to safeguard 977 jobs and improve services across all 13 sites.

He said last November: "We have great confidence in the hotels, especially those in the North-East region, and that is why we purchased them."

The Northern Echo learned of REIT's plans when an employee, who wished to remain anonymous, said a letter had been given to all staff outlining the future of the 13 hotels.

He said: "It (the letter) says that things are not going as well as expected ... so there is going to be a sale.

"They may sell them off individually, or as a group. We have heard something about sealed bids and possible closures.