MWB founder Richard Balfour-Lynn has announced he is to resign from the company, ending a fractious relationship with the City and shareholders.
Balfour-Lynn, 58, will step down as both chief executive and a director of MWB, which comprises the Malmaison, Hotel du Vin and MWB Business Exchange businesses, at the end of the month.
The entrepreneur, who set up MWB in 1982 as Warwick Balfour Properties, has long been at loggerheads with Pyrrho Investments, the group’s largest independent shareholder.
This week, Pyrrho accused Balfour-Lynn of “a massive and unacceptable destruction of shareholder value since late 2009”.
It added that the share price has fallen more than 75% in the past year.
Balfour-Lynn has also had a sometimes tense relationship with the City. With pressure increasing during the credit crunch, he slashed debt at MWB with a £103m sale and leaseback of five Malmaison hotels.
In 2010, as chief executive of Alternative Hotel Group, owner of the De Vere and Village hotel chains, he led a £650m debt-for-equity swap with Lloyds Banking Group.
However, MWB chairman Eric Sanderson praised Balfour-Lynn, saying: “Richard is an exceptional entrepreneur who has built up a major hotel and business services group. He has always been passionate about developing great hospitality in the business.”
annabel.dixon@estatesgazette.com
