Bids flood in as QMH prepares to break up

Troubled hotel group Queens Moat Houses (QMH) is understood to have received a "significant level" of bids to buy all or part of the company.

QMH declined to comment on the suggestions, but sources close to the company confirmed that bids had been received over the past week and that QMH was now looking through those offers.

In November last year, QMH appointed investment bank Morgan Stanley to help with the company's review of its business, which led to the bank sending out "teaser" documents to more than 50 companies.

The process was expected to value QMH at as much as £700m, but the company denied that it was a precursor to it being put up for sale.

But now billionaire property tycoons David and Simon Reuben are said to have teamed up with Macdonald Hotels and the Bank of Scotland to make a £350m bid for the UK arm of QMH.

US investment company Blackstone, which owns the Savoy Group, is also understood to have bid £125m for QMH's German division.

A sale of any or all of its divisions is one of several options being investigated by QMH in a bid to pay off its £640m of debts.

The company launched the review of its business in August last year, and was forced to ask for shares to be suspended a month later because of delays in reaching an agreement with its lenders.

Source: Caterer & Hotelkeeper, 19 - 25 February 2004