More than half of Jarvis Hotels shareholders have backed a £159m management buyout of the company led by chairman John Jarvis and chief executive officer Richard Thomason.
Supporters of the 145p-a-share-offer, made through bid vehicle Kayterm, include entrepreneur Jack Petchey, who owns just under 30% of the company through his investment vehicle Trefick. The bid also has the backing of the Jarvis board. In a statement, deputy chairman James Joll said it was "in the best interests of Jarvis and its shareholders''.
Jarvis now looks set to follow Macdonald Hotels and Thistle Hotels, which de-listed earlier this year.
One early sale from the 67-strong Jarvis portfolio would be the Ramada Plaza Regents Park, in London, which would be used to help fund the deal. However, chairman John Jarvis stressed that the company could continue to manage the property.
The three Jarvis properties currently on the market - Preston Park, Brighton; Wentloog, Cardiff; and another hotel that is currently under offer, and therefore cannot be named - will be unaffected if the deal goes through.
"The market hasn't been kind to small companies and the hospitality industry," Jarvis added. "We needed to take on more debt and you can't do that in the public arena - you have to go private. We're in it for the long term."