Savoy's New York hopes are stalled

The Savoy hotel group has delayed its plans to open in New York.

It had been holding talks with US property developer Vornado Realty in an effort to open a 200-bedroom hotel in the city, which is one of the key targets for Savoy's overseas expansion.

A group spokeswoman said: "We would love to have a hotel in New York but that is on the backburner at the moment."

She denied recent speculation that the group was interested in buying London's Grosvenor House, and added that a hotel such as the Dorchester would be better suited to the group, although there was no suggestion that negotiations are going on with its owners, the Brunei Investment Agency.

Last week the Savoy Group, which was bought by US investment firm Blackstone in 1998 for £520m, reported increased turnover and gross trading profit for the year to 31 December (Caterer, 13 July, page 9). Two years ago speculators said Blackstone had paid too much, but the latest figures appear to have justified the purchase price.

The spokeswoman added: "If they had paid any less they would not have got the group. It is now worth a lot more than what they paid for it."

Blackstone this month opened a London office in St James's to oversee its property and other investments in Europe.

by Louise Bozec louise.bozec@rbi.co.uk

Source: Caterer & Hotelkeeper magazine, 20-26 July 2000