Forte cuts asking price for Cavendish

Forte is renewing its efforts to sell its 251-bedroom Cavendish St James's hotel in London's Jermyn Street and has cut the price it wants for the property, which has languished on the market for three years.

Previously the company was believed to be asking £75m-£90m for the hotel, although it may now accept £65m, said insiders.

Insignia Hotel Partners has been appointed exclusive agent to sell the hotel.

The hotel attracted a £75m offer last summer from Scottish entrepreneur Jim Mackay, who had planned to turn it into a five-star gay hotel along the lines of his Soho gay club, the Edge.

A spokesman for Mackay confirmed: "We are still in the running. We are still very interested in the hotel as a going concern," but he could not say whether Mackay had put in a revised bid. He added that, if successful, Mackay might decide not to run it as a "pink" hotel.

Tim Hansing, development director at Mövenpick Hotels & Resorts, denied newspaper reports that the Swiss-based company had put in a £65m offer for the Cavendish. But he confirmed that Mövenpick, which has no UK hotels, has been evaluating the Cavendish along with other opportunities in London.