LONDON— Marylebone Warwick Balfour (MWB) Group PLC has bought the remaining 50% stake in its mid-market lifestyle hotel group Malmaison for £6 million(about US$9.3 million) cash from Rezidor SAS Hospitality, formerly SAS Hotels. MWB also bought the existing 18-year hotel management contract from Rezidor for a further £7 million (about US$10.8 million) cash. MWB will take responsibility for operational management of the Malmaison hotels during the next six months and has appointed Regal Hotels Group Managing Director Charles Holmes the new chief executive of Malmaison. As a result of the deal MWB now has complete ownership of the UK-based hotels business, including the operational management. Under the terms of the purchase MWB is paying an initial £4 million (about US$6.2 million) cash with the remaining £9 million (about US$13.99 million) cash payable in 12 equal monthly payments commencing September 2003. In addition it has repaid a £16 million (about US$24.9 million) cash mezzanine loan from Rezidor from its existing facilities. SOURCE: AFX News
Previous ArticleLodgeNet Accelerates Drive To Gain Free Cash Flow
Next Article A Year Later, Downtown NY Remembers 9/11