Venture capitalist Alchemy Partners has finally sold its Paramount Group of hotels for £215m - a massive £35m less than the mooted original asking price.
Dawnay Shore Hotels, which was set up by investment companies Dawnay Day and Shore Capital, has agreed to buy the 13-strong group of four-star hotels and plans to expand the chain "significantly" this year. It was already in talks with similar groups.
Dawnay Shore Hotels will be headed by former Rocco Forte Hotels managing director David Pantin, while Paramount's current management team will remain with the group under an operating contract.
The company added that it expected to sell or float Paramount within the next year, or to transfer its properties into a property investment fund (PIF) if the Government gives PIFs the go-ahead.