De Vere offloads Belfry for £186m

The De Vere Group has sold The Belfry hotel, famous for hosting the Ryder Cup, to Irish leisure conglomerate Quinn Group for £186m.

As part of the agreement, Quinn has contracted De Vere to operate the hotel and golf resort which will retain its name for the next 25 years and the hotel will also keep its old name.

De Vere will return the cash generated from the sale to shareholders by way of a special dividend, which will equate to 159 pence per share.

Peter Daresbury, De Vere’s chair, said: “The sale will enable the board to return around £183m to shareholders and enables De Vere to continue to operate the hotel under the De Vere brand for 25 years without the need to employ the group’s capital.

“The board felt the price was highly attractive and is at a 47 per cent premium to the hotel’s net book value of £126.3m.”

In the last financial year, De Vere Belfry reported pre-tax profits of £14.3m from a turnover of £33.9m.

De Vere bought the Belfry, outside Birmingham, in 1973. Set in 550 acres, the resort has 324 bedrooms, a spa, two restaurants, two bars and a nightclub.

Renowned for its golf courses, facilities include three 18-hole championship courses and a 34-bay driving range.