The von Essen Hotels group, which operates some of the most luxurious hotels in the UK and Europe, has entered administration.

It is understood that Ernst & Young have been appointed administrators after Von Essen struggled to manage its debts.

A spokesperson for Von Essen told Leisure Opportunities that the group would make an announcement later today (21 April 2011).

Tim Smith, director of hotel consultancy HVS London, said von Essen's failure could be down to its ambitious programme of acquiring properties.

"The von Essen group has long been the subject of informal speculation largely due to the large number of hotels acquired in a relatively short space of time, the reliance on up-market guests wanting to stay in provincial UK locations, and the reported prices paid for the hotels," he said.

"It is a sad day as von Essen had found a successful and 21st century use for some stunning and important properties.

"It further proves that the provincial UK hotel market is still very tough and price sensitive and whilst there remains demand for such properties, perhaps not to the level to cover the substantial costs of running such high quality hotels and the upkeep of such historic buildings."