Search
The Caterer

Spanish hotel group to take over Paramount

24 August 2007 by
Spanish hotel group to take over Paramount

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.

Barceló of Spain tipped to take on Paramount hotels >>

Dawnay Shore Hotels on track to have 4,000 rooms within five years >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.