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MWB consolidates Malmaison ownership
Marylebone Warwick Balfour (MWB) has re-arranged its ownership structure of its hotels subsidiary, Malmaison.
MWB has acquired the remaining 50 per cent interest in the brand of its lifestyle hotel group Malmaision for £6m from Rezidor SAS Hospitality (Rezidor), formerly SAS Hotels, and has bought in the existing 18-year hotel management contract from Rezidor for a further £7m
The group is to take responsibility for operational management of the Malmaison hotels during the next six months with Charles Holmes as newly appointed chief executive.
As a result of re-structuring, MWB now has complete ownership of the UK-based hotels business, including the operational management which it believes has enhanced the value of the group's Malmaison holding.
Joe Shashou, MWB's director of hotels said: 'By acquiring full ownership of the Malmaison brand and buying back the operational management contracts MWB is taking full control of the country's premier lifestyle boutique hotel chain. This acquisition further underlines our stated strategy of maturing and enhancing Group assets.'
MWB is paying an intial £4m cash with the remaining £9m payable in 12 equal monthly payments starting in September 2003. In addition the Group has repaid a £16m mezzanine loan from Residor from its existing facilities.
When MWB first acquired its interest in Malmaison, the company operated five hotels providing a total of 460 rooms. Rooms total is now 556 and is expected to rise to 850 by the end of 2003. Further expansion is anticipated through development of another three UK hotels, planned for Oxford, Liverpool and Brighton, which would take total rooms to approximately 1,200. Details: +44 (0)20 7706 2121
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