Folio Hotels, the privately-owned operator, has been saved from administration by a deal that will result in Bespoke Hotels acquiring a quarter of its property portfolio.

Folio was placed in administration in December 2008 after the economic downturn left it unable to meet lease payments. MCR was appointed the administrator. Bespoke, which runs 11 hotels, will take over the management contracts for 13 of Folios' properties. Nine of the hotels are controlled by Landesberg and Rosenberg families, who also owns pub company Admiral Taverns, and three are owned by billionaire investors the Reuben brothers.

The remaining 20 Folio hotels will be run by the firm's existing management team. The deal is expected to be signed later this week.