Prison to become a hotel

Malmaison has plans to convert Oxford Prison into a 90-bedroom hotel, and is due to announce its European expansion plans in the next few weeks.

"The deal on Oxford has not yet been completed, but we are hoping to conclude it within the next few weeks," said Gordon McKinnon, vice-president of marketing.

And the company's first foray into Europe is expected to involve as many as four hotels in Germany and Belgium.

Malmaison is jointly owned by Rezidor and UK property company Marylebone Warwick Balfour Group. Rezidor, which also owns the Radisson SAS brand, has stated that it intends to expand the Malmaison chain to 25 hotels "in the near future".

The European hotels will be done with different developers, and Malmaison will have the management contracts but no equity stake, said McKinnon.

He admitted that the £26m, 100-bedroom London Malmaison on Charterhouse Square, originally due to open this autumn, would now open in spring 2003.

He said: "It is a bit behind but it is not an issue for us."