The Paramount Group of Hotels is to be taken over by Spanish hotel group Barceló Hotels & Resorts in a deal that will see current owners Dawnay Shore Hotels (DSH) transform itself into a hotel investment company.
Barceló, a privately-owned company that runs 130 hotels with more than 35,000 rooms in 14 countries, takes its first steps into the UK as the lessee and manager under a 45-year agreement of Paramount's 20 four and five-star UK hotels. Its rent for the first year will be £28m.
Paramount's portfolio includes the Lygon Arms in the Cotswolds, the Imperial in Torquay, the Majestic in Harrogate and the Palace in Buxton as well as stately home Walton Hall.
The deal, which is due to be completed in September, marks the end of a nine-month strategic review at DSH.
Under its new guise as an investment company, DSH has retained a property portfolio worth £556.25m and will look to acquire further hotels, develop and lease them
Peter Klimt, Dawnay, Day's chief executive and a DSH director, said: "We have today laid the foundations for DSH to grow into a major owner of hotel property."
DSH has a principle asset of 49.9% held by the AIM-listed Hotel Corporation. Shaw Capital manages DSH in partnership with Dawney Day.
By Christopher Walton
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