Japanese firm snaps up Menzies chain

31 January 2005 by
Japanese firm snaps up Menzies chain

Nikko Principal Investments has unveiled plans to grow the UK hotel chain Menzies following its £120m deal to acquire the business this week.

Going against the current trend, the Japanese investment firm plans to own and operate the 14 four-star hotels in the chain.

Senior management will retain shares in the company, with chairman and founder Nick Menzies holding a 17% stake and continuing to head the company. Menzies said there was "no particular target" to grow the chain, but he would continue to build a mixed portfolio of resort, country house and city-centre hotels.

"One of our biggest strengths is our diversity," he said. "There are some interesting opportunities out there in the fragmented, four-star market."

The deal, which marks Nikko's first foray into UK hotels, will enable existing private equity backers BancBoston Capital and Indigo Capital, which invested in the chain following a failed flotation in 1998, to exit the company.

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