The board of Gresham Hotels issued a profit warning for the second half of the year yesterday evening, just two days before Thursday's meeting of shareholders to vote on the removal of four directors.
In a statement, the company said a combination of continued poor trading conditions, and the exceptional costs arising from the holding of the extraordinary general meeting, meant brokers' forecasts for this year's profits would not be met.
The company also took the unusual step of appointing chief executive Patrick Coyle as joint chairman of the company.
It said this was to avoid deadlock should Israeli shareholder Red Sea Hotels be successful in its efforts to remove current chairman Sean Henneberry from the board.
Gresham said Mr Coyle viewed this role as a temporary position and would not receive any additional pay or other benefits.
