Hotel operator De Vere Group is making its London debut with the £60m purchase of the four-star Cavendish Hotel on Jermyn Street in the West End.
Granada Compass sold the hotel separately from its disposal of the Forte Hotel division, which was announced on 16 October.
In the year ending September 2000, the 251-room hotel generated a profit before tax of £5.6m. It has net assets of £54.4m.
Paul Dermody, chief executive at De Vere, said: “This acquisition represents a price per room of £239,000, which the board considers an attractive price for a hotel of this calibre.”
The sale ends speculation about entrepreneur Jim Mackay and Shami Ahmed’s property vehicle Legendary Investments buying the hotel.
EGi News 06/12/00
