Paramount sells 87% stake

Malaysian-owned firm Alangka-Suka International has bought an 87% stake in Paramount Hotels, the five-strong UK group formed in 1994 by Michael Purtill.

The £37.5m deal provides Paramount with funds to expand and allows Schroder Ventures, Paramount's original backer, to cash in its investment. Schroders has held around 75% of the equity.

The purchase gives Paramount links to Alangka-Suka's sister company, Antara Holiday Villa, which runs 14 properties, mainly in the Far East. Both are owned by Advance Synergy Berhad, listed on the Kuala Lumpur stock exchange.

Caterer reported four months ago that Paramount was for sale, although this was denied by managing director Mr Purtill, who said the aim was to raise money in south-east Asia for acquisitions (News, 13 March).

The Paramount management team will retain operational control of the group.

Sales at Paramount have risen from £12m to £17.5m over the past two and a half years. Profits are up from £2.6m to £5.2m.

Property agent JLW Hotels advised Paramount on the sale.