Menzies, the 14-strong hotel chain put up for sale late last year, has been bought by Nikko Principal Investments, the European arm of Japanese bank Nikko Cordial, for £120m.
Nikko, who has bought out venture capitalists BancBoston and Indigo Capital, will hold 79% of the hotel chain.
Nick Menzies, founder of the chain, will retain 16%, compared with his 35% holding before the sale. The remaining 5% will be in the hands of the management.
The group plans to use Menzies as a platform for further consolidation in the UK hotel market.
Brian Berry, chairman of Nikko Principal Investments, said: “”Menzies represents an exciting opportunity for Nikko to build a substantial position as an owner/operator of upscale hotels within the UK.”
Nick Menzies commented: “The UK four star hotel sector remains fragmented and we believe there are significant opportunities for us to lead the consolidation of the sector and build value.”
Menzies, which has hotels in Scotland, the Midlands and the West Country, was set to be sold to Englefield Capital in October last year, but the deal collapsed.
US investment bank Houlihan Lokey Howard & Zukin advised Menzies on the sale.
The deal is Nikko Principal Investments’ first foray into hotel ownership.
References: EGi News 04/01/05
