T
he long-running battle for control of three of London’s most prestigious hotels – Claridge’s, the Berkeley and the Connaught – has taken a major step closer to a conclusion.
The Barclay brothers, who control a 64% stake in the £1.6bn Maybourne Hotel Group, are in discussions to sell out to Qatari investors.
The remaining 36% stake in the business is owned by Irish businessman Paddy McKillen, who must give consent for any sale to conclude.
McKillen and his backers Colony Capital have a pre-emption clause, which means that the Barclay brothers must first offer their stake to them at any agreed sale price.
McKillen has existing ties with the Qatari royal family, having struck a deal to invest around £50m to help build his stake in the group in 2010 and as a result they are likely to be a party he is willing to own the hotels alongside.
Last month the Abu Dhabi Investment Authority made an approach for the whole group but a Qatari entity has now entered the fray.
McKillen and the Barclays have had a series of legal disputes spawned by McKillen taking the brothers to court in 2012 to block the purchase of their stake. Half of the Barclays’ control over the company is as a result of loans they own, secured against a stake owned by Derek Quinlan.
