Happy ending to the Savoy story?

To eat or sleep at one of the Savoy Group hotels is an impressive experience: classic elegance and superb service combine to provide special hospitality that is hard to equal anywhere in the world.

As soon as you walk through the doors of the Savoy, Claridge's, the Berkeley or the Connaught you are taken back in time. The adherence to old-fashioned values delights both British and overseas visitors.

However, with all the recent turmoil at the Savoy, many people fear that the unique nature of the hotels will be compromised and that excellence will be replaced by mediocrity. But such fears should begin to subside with the appointment of Ramón Pajares as managing director.

Fears of a decline in standards should Forte gain further control was, of course, the main rallying call of Giles Shepard. And yet it was always probably a spurious argument.

No one in their right minds would tamper with the uniqueness of the group's hotels - cashing in on those fine qualities is the route to success, not compromising them, and Forte knows that just as much as Mr Shepard.

He fought a long and hard fight to maintain the independence of the group, but in recent years he seemed to lose the grip on one vital aspect of his job: his duty to the shareholders. The group's financial performance has been nothing short of dismal over the past few years.

It is true that the Savoy made a profit before tax of £575,000 in the first half of 1994, a welcome improvement compared with the loss of £1.75m in the same period last year. There has also been a reduction in debt which has improved the balance sheet.

But to return just £575,000 on a turnover of nearly £43m when most other London hotels are booming is disappointing to say the least. It is as if the commitment to high standards has been regarded as an end in itself rather than the means to provide a stable and successful business.

The early statements from Mr Pajares have been encouraging. He has committed himself to maintaining existing high standards and traditions and his performance at London's Four Seasons Hotel should give encouragement to both shareholders and staff alike.

It is likely that one day the struggle for control of the Savoy will make a gripping film. And just like the real thing, there is every prospect it will have a happy ending for customers, staff and shareholders.