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Principal Hayley buys two Real Hotel Group properties from administrator

24 June 2009 by
Principal Hayley buys two Real Hotel Group properties from administrator

Hotel and conference venue operator Principal Hayley has picked up two of the failed Real Hotel Group's flagship properties, agreeing deals to acquire the New Connaught Rooms in London and the Glasgow Central Hotel.

The company, which is backed by private equity firm Permira, has bought the New Connaught Rooms in Covent Garden through property agent Edward Symmons for an undisclosed sum, thought to be in the region of £10m.

Edward Symmons was acting on behalf of administrator BDO Stoy Hayward which has been operating the property as a going concern since RHG's collapse in January.

The move, predicted by Caterer earlier this month, will see the property undergo a £7m refurbishment programme before re-opening in September as The Grand Connaught Rooms.

The Glasgow Central Hotel, which has been closed since January, cost Principal Hayley around £2m, in a deal also handled by Edward Symmons.

The hotel will remain closed while it undergoes an extensive £20m refurbishment programme, including a total overhaul of all the public areas and the addition of an extra 30 bedrooms. The property will re-open in February 2010 as The Grand Central Hotel.

Tony Troy, chief executive of Principal Hayley said the two hotels represent a strategically "excellent fit" to the group's portfolio.

"The Grand Connaught Rooms will work hand in hand with the Hotel Russell to offer some of the finest conference and banqueting that central London has to offer," he said. "Glasgow is a thriving tourism and conference destination and the acquisition of The Grand Central Hotel is in keeping with our strategy of offering dedicated conference hotels in key city centre locations around the UK."

The Principal Hayley portfolio now stands at 24, including The George Hotel in Edinburgh, The Met in Leeds and the Hotel Russell in London.

Principal Hayley will not be affected by AAIM administration >>

Principal Hayley appoints first F&B development director >>

The Real Hotel Group collapses into administration >>

Six former Real Hotel Group hotels up for sale >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

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