Paddy Crerar of Crerar Hotels struck a deal with Reit Asset Management, as it was then known, in November 2006 to operate 13 of the former LESG
hotels, including seven in the North East.
Last week Scotland company Crerar Hotels took over seven hotels in the North-East and Cumbria from the administrators of LESG.
The group struck a deal with London property group Reit Asset Management to run and expand the former LESG hotels.
Sales manager Mary Kennedy said: "Flodrive bought the leases back from LESG
, and set up a new company called Oxford Hotels & Inn Management Ltd, to run the hotels that they already owned.
The hotelier has struck a deal with London-based property giant REIT Asset Management to operate the former LESG hotels.
REIT owned the hotels during LESG's tenure, but has now arranged with LESG administrators Ernst & Young for Crerar to become the new operator.
The future of the other two LESG
hotels in the North-East - the Springfield in Gateshead and the Derwent Manor in Allensford, Northumberland - has not yet been decided.