De Vere Group signs 20-year contract with Spanish resort

De Vere Group has signed a 20-year management contract for the Roda golf and beach resort in Murcia, Spain.

It will manage the 150-bedroom hotel and spa, 18-hole championship golf course and beach club, which will be known as the De Vere Roda. Construction is due to be completed mid-2008.

De Vere's investment of £1.4m in the project continues its strategy of developing the brand and is in line with its aim to achieve a 10% return on capital by the end of 2007.

De Vere's chief executive, Carl Leaver, said: "This is an excellent deal. The Roda agreement is further demonstration of our commitment to growing the business through low capital intensive routes and improving our returns on capital, thereby creating maximum value for shareholders."

The contract includes exclusive rights to develop timeshare within the resort and grants the option to manage a second golf resort hotel at Corvera, Spain, which is planned to open in 2009.