Scotsman Group in MBI takeover talks

Boutique townhouse operator the Scotsman Hotel Group is in takeover talks with the owner of JJW Hotels and Resorts.

Negotiations on the sale of the three-strong Scotsman group, believed to have a £60m price tag, are with MBI International, owned by Saudi tycoon Sheikh Mohamed Bin Issa Al Jaber.

JJW owns 42 hotels in Europe, ranging from budget to five-star properties, including the Berners hotel in London's West End.

Jonathan Dawson, general manager at the Scotsman hotel in Edinburgh, confirmed that the discussions were under way but dismissed reports that the group was forced to sell after breaching its banking covenants. "I don't know where that information came from," he said.

Brian Williams, who resigned as chief executive of the Scotsman Hotel Group at the end of December, said that the group was continuing to trade with the full support of the Bank of Scotland.

The group was founded in May 1999 with £90m-worth of backing from Botts Capital Partners and the Bank of Scotland. Its ambition was to open as many as 12 townhouse hotels in key European cities.

As well as the Scotsman hotel - a £19.5m purchase and conversion of the former headquarters of the Scotsman newspaper - the group owns 42 The Calls in Leeds and Htel de la Trmoille in Paris.

Last week, the 216-bedroom Berners hotel closed its doors for a year to undertake a £25m refurbishment that will upgrade it from four-star to four-star-plus rating.

By Angela Frewin

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