Caterer and Hotelkeeper – 26699

Forest Mere, the Savoy Group's Hampshire health hydro (above), has been sold to managing director Julia Hughes for £2.075m with funding from private backers.

The 64-bedroom property was put up for sale in January by new Savoy Group managing director Ram¢n Pajares, though the price tag of £3m was clearly, as it turned out, a little optimistic.

Ms Hughes, who has run Forest Mere for the past 16 years, said her main aim was to ensure the continuity both of the staff and clientele. She said repeat guests accounted for about 80% of business.

Regular guests are said to include a host of TV and film personalities as well as royalty, all attracted by an average room rate of about £100, which includes all the main treatments, use of facilities and all meals.

Ms Hughes, who spent 10 years at the Chester Grosvenor before joining Forest Mere, said she was currently formulating plans for a refurbishment.

lAs Caterer went to press, City analysts were predicting the Savoy Group would report 1994 pre-tax profits of about £4m - up from £725,000 the year before.