Stakis takeover boosts Hilton's presence in UK

LADBROKE'S Hilton hotels chain is set to double its size in Britain if the planned takeover of Scottish hotel group Stakis goes ahead as expected.

The number of Hilton hotel rooms in Britain will leap from 8,093 to 16,147 as Stakis's 54 hotels are added to Ladbroke's 38 Hilton UK hotels. "The quality and scale of Stakis's businesses will significantly enhance our UK hotel operations," said Peter George, chief executive of Ladbroke.

Ladbroke's offer of 146p per Stakis share puts a price tag on the group of almost £1.4b. Stakis has agreed to the offer.

David Jarvis, chief executive of Hilton International, is leaving, to be succeeded by David Michels, chief executive of Stakis. Another casualty of the takeover is Neil Chisman, finance director of Stakis, who is leaving after nine years in the job. Brian Wallace, finance director at Ladbroke, will control the group's finances.

Jobs are also expected to be axed at the Stakis headquarters in Glasgow although it is not yet known how many. Ladbroke's central office in Watford will become the new headquarters.

"It will not come as any consolation to those who do lose their jobs but while any losses will be very much regretted they will be exceeded by the number of jobs created over the next few years," said a Stakis spokesman.

The new group expects pre-tax profits of about £400m this year. Annual cost savings of at least £16m have been predicted.

Founder Sir Reo Stakis said: "It is a matter of great sadness that this event has come to pass, bearing in mind that I have spent the best part of my life creating and developing the group."

by Louise Bozec

Michels, who originally joined Ladbroke in 1981 but left in 1991 to rescue Stakis from the brink of collapse, will collect a payout of more than £1.3m for his shares and share options.