Arcadian pays £5.8m for Woodlands Park

Woodlands Park, a four-star hotel near Cobham, Surrey, is the latest property to join the fast-growing Arcadian International stable.

The Surrey-based group has paid receivers at Touche Ross £5.8m for the 59-bedroom property, which this year is expected to turn in a net operating profit of £633,000 on a turnover of £2.3m.

Some industry commentators thought the price paid expensive but Arcadian chief executive Robert Breare vigorously rejected that view. "The hotel has enormous conference and banqueting business and is one of the few in the area with a full public entertainment licence. There is great upside potential," he argued.

Mr Breare said that although the property was in good order - around £400,000 has been spent on refurbishments over the past three years - he planned to spend up to £2m adding a leisure centre and possibly some more rooms, subject to planning permission.

Arcadian was also this week being tipped as the favourite to take over the Great Eastern Hotel which is next to London's Liverpool Street station. It is believed Arcadian, in partnership with British Land and Sir Terence Conran, plans to spend £25m redeveloping the site.