A YORK hotel has withdrawn from an international hotel chain after the group was plunged into a financial crisis.

Last month the Evening Press reported that Le Meridien, the group which bought the Royal York Hotel two years ago, was battling to stave off administrators.

Now control of Meridien York has changed hands from the Le Meridien group to the Royal Bank of Scotland. The bank has removed the hotel from the group and plans to bring in new management.

A spokesman from Finsbury, the London-based communications adviser for Le Meridien, said: "The Royal Bank of Scotland owns the hotel in York and has decided to withdraw it from the Le Meridien group. In terms of the staff and guests there will be no change and the hotel will continue running as normal."

Updated: 12:15 Thursday, July 31, 2003