Great Eastern staff reprieved

The 75 staff at London's Great Eastern Hotel have won assurances their jobs are safe until November, when the property will close for its £30m facelift.

The redevelopment is being orchestrated by a consortium of Arcadian International, the British Land Company and Conran Holdings, which has a 125-year lease from owner Railtrack.

The 163-bedroom hotel, near Liverpool Street Station, has been managed by Compass Hotels since 1983, but its contract expires on 31 March.

Arcadian chief executive Robert Breare said that agreement in principle had been reached with Railtrack and Compass for Arcadian to take over operation of the hotel from midnight on 31 March.

Breare stressed the two-star property would not be operated as an Arcadian brand hotel until it reopened as a four-star hotel after renovation in 1998. .