Egyptians Emerge as £75 Million Bidders for Historic Stafford Hotel in St James’s‏

July 19, 2009 by admin · Leave a Comment
Filed under: Business News

The Stafford Hotel in St James’s London, parts of which date back more than 350 years, looks set to be acquired by an Egyptian tycoon in a deal worth £75 million. The exclusive 105-room hotel, which for the past 14 years has been owned by Daniel Thwaites, the Lancashire brewer, was put up for sale at the end of last year amid hopes that it might fetch as much as £100 million.
More recently, Savills, the agent, has been asking about £80 million. Although none of the parties involved would comment, it is understood tjat Thwaites has entered exclusive talks with an Egyptian bidder. Property industry sources cited RAMW Group, a Cairo construction and tourism, company founded by Roushdy El-Sharkawy, as the possible suitor. Its assets include the Hyatt Regency resort and hotel in the Egyptian city of Sharm el Sheikh.
Analysts said the sale made sense as it would make a big dent in the brewer’s net debt of £142 million. One analyst said that although Thwaites made more money from its Shire Hotels business than beer and pubs, the Stafford had ‘always stuck out like a sore thumb’ compared with the rest of the mainly four-star Shire chain.
Thwaites has responded forcibly to ‘unprecedented pressures on profitability’ caused by the economic downturn. In the January, it announced plans to transfer 37 of its managed pubs to its tenanted business, with another five being moved to Shire. It has since decided to put as many as eight managed houses up for sale. The restructuring has affected 86 jobs. The Strafford is Made up of three former townhouses and a carriage house. The main house was home to Lord and Lady Lyttelton in the 19th century, later becoming Green’s Private Hotel and the St James’s Palace Hotel.
The Stafford Club, next door, was added in 1886, and in 1912 the remaining neighbour was brought out and became the Stafford Hotel.
During the Second World Was its status as an hotel was interrupted when it served as a club for American and Canadian officers. After the war it was owned by Costain, the property group, then in 1985 it was sold to Trafalgar House. In 1995, it was acquired for £16 million by Thwaites.
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