Macdonald Hotels Nearing £400 Million Sale Leaseback of 23 Hotels

The Times - October 2, 2006

Macdonald Hotels, the privately owned hotel operator, is on target to reap more than £400 million from the sale of a package of 23 hotels put up for auction in July — at least £100 million above previous estimates.

The company, which was taken private in 2003 in a £620 million deal backed by Bank of Scotland, is understood to have whittled the bidders down to a shortlist of about four parties, including Dawnay Shore Hotels and Moorfield and Prestbury, the property investment firms.

When Macdonald appointed Deloitte to handle the disposal, it indicated that it would consider only sale-and- leaseback proposals that allowed it to retain management control, but at least two of the remaining bidders are understood to have made bids of up to £450 million to buy the hotels outright with vacant possession.

Dawnay Shore is keen to add the properties to its Paramount Hotels chain. Moorfield also has an operator standing by to lease them. Sphere: Related Content