Bank's hotel offer leaves Stakis cold

The Royal Bank of Scotland is believed to have approached Stakis to see whether it would be interested in buying or managing its distressed hotel assets.

It is not known how many hotels are involved - industry estimates range from 20 to 60 - but the wide range of sizes and standards is said to have stimulated little interest from Stakis, which focuses on 100-bedroom-plus hotels.

A spokesman for the Royal Bank said: "We do look at the options available to us for the running of these sorts of businesses, but we have no firm plans to change things at this stage."

Stakis, which banks with the Royal, declined to comment, though chief executive David Michels was more forthcoming on the subject of the group's latest financial statistics, released on Tuesday.

In the year to 1 October, the company reported an impressive 28% leap in pre-tax profits to £25.8m from turnover up 19% to £173.4m, and Mr Michels said expansion through new-build and acquisition would continue.

While Stakis remains a domestic hotel operator, the restrictive nature of gaming in the UK means it is casting its eye abroad for expansion of its casino business. Both Portugal and the Channel Islands are being looked at.