Boutique hotel operator the Scotsman Hotel Group has been bought for more than £60m by MBI International.
MBI is a £2b multinational corporation owned by Saudi tycoon Sheikh Mohamed Bin Issa Al Jaber.
MBI owns JJW Hotels and Resorts, which operates 55 hotels in Europe and the Middle East, from budget to five-star.
However, the Scotsman Hotel Group will not be joining the JJW line-up.
Instead it will become the heart of a new collection of luxury hotels across Europe, which may retain the group's name.
Also likely to join the Scotsman is JJW's only other UK property, the four-star Berner's hotel in London.
Berner's closed last month for a £32m refurbishment, which will be completed by March 2007.
Another JJW flagship hotel, the Grand Hotel Wien in Austria, may also be part of the group along with a new hotel and spa planned for JJW's five-star golf and residential resort in the Algarve, Portugal.
Initial investment will see new bedrooms added to the health club and spa in Edinburgh, a general refurbishment in Leeds, and an overhaul of the bars and restaurants in Paris.
by Angela Frewin