The survival of Thistle Hotels appears uncertain following BIL International's successful £627m takeover bid and the resignations last week of chief executive Ian Burke and four nonexecutive directors.
Speculation over the future of the brand is rife. A spokesman for BIL, a Singaporean investment company, said Thistle was undergoing a full financial, operational and strategic review but analysts expect some, if not all, of the group's properties to be sold.
"I think they'll flog the lot," said one industry commentator, pointing to the significant amount of real estate value in Thistle's portfolio. Other analysts have speculated that BIL will bring in a globally known hotel brand to breathe new life into the flagging hotels.
Arun Amarsi, an existing director of Thistle and chief executive officer of BIL International, became chief executive officer and managing director of Thistle after Burke stepped down last Saturday. Property magnate Tan Sri Quek Leng Chan, also a director of Thistle and chairman of BIL, has been appointed chairman of Thistle.
Only Thistle's pre-existing finance director, Ian Durant, has been kept on as part of BIL's new executive team. Non-executive chairman David Newbigging, deputy chairman Charles Mackay and nonexecutive directors Arthur Hayes and Baroness O'Cathain have all left the company.
BIL has appointed two nonexecutive directors to the Thistle board: Michael Cairns, former chief operating officer of Queens Moat Houses, and ex-HSBC banker Thomas Robson. It is expected Burke will receive about £300,000 to sweeten his departure.
BIL initially launched its hostile bid for Thistle in March with a 115p-a-share offer. Thistle rejected the offer outright but the hotel group finally succumbed to a 130p-a-share unconditional offer last week.