Laurence Murrell, owner and managing director of Torquay Leisure Hotels, is retiring following the sale of the business to its management team.
TLH Leisure Hotels was founded in 1947 when the Murrell family first started the business with the acquisition of the Derwent hotel. In 2000 the company adopted the name TLH Leisure Resort and the group's portfolio now includes the 174-bedroom Derwent, 99-bedroom Victoria, 92-bedroom Toorak and 70-bedroom Carlton hotels as well as the Aztec Spa.
Murrell will retain equity in the business but will be stepping back from day-to-day running of the business.
Group finance manager Ian Piercy; Jason Garside, general manager of the Derwent hotel and now managing director and chief executive of the company; and John Finnegan, general manager of the Victoria hotel, have acquired a majority stake in the business with £3.5m worth of funding from Connection Capital and funding from Santander.
Murrell said: "I am hugely proud of what has been achieved by TLH Resorts in the last 71 years, growing to an award-winning resort business with a nationally recognised brand name synonymous with great value holidays.
"Great people have always been key to TLH's success and I am confident that the new management team will continue to expand and grow on that success for many future generations of customers to enjoy."
PKF Francis Clark and OTB Eveling acted as lead advisors for the shareholders on the sale.
Andy Killick, PKF Francis Clark corporate finance Partner said: "We were delighted to act for Laurence and his family and seeing the MBO complete having worked closely with the business for a number of years. It is especially pleasing that the deal outcome will see ownership being retained locally and that continuity will ensure that the business continues to go from strength to strength."
James Eveling, partner at OTB Eveling, added: "We are pleased to have been able to work with the Murrell family and the wider seller team on this deal under quite a tight timetable."