Michels will quit Hilton when merger goes through
David Michels will quit as chief executive of Hilton Group when the British leisure and betting operator completes a £3.6b deal to sell its hotels to American sister company Hilton Hotels Corporation. Michels, 58, has been at the Hilton helm since 1999, when it acquired rival Stakis, where he was chief executive. Michels, regarded as one of the leading lights of the hospitality industry, is unlikely to quit the sector and is expected to set up a new hotel venture soon. – Sunday Times, 13 November

Bought for £75m in 1995, Ritz is now worth £175m
After having bought the Ritz for £75m in 1995, the Barclay brothers now have a hotel valued at £175m according the the accounts for Barclays’ Ellerman Investments. – Mail on Sunday, 13 November

Icelandic bank prowls around Compass’s SSP division
The private equity arm of Kaupthing, Iceland's largest bank, is considering a bid for the travel concession arm of Compass, Select Service Partner. SSP operates Moto service stations and chains such as the Upper Crust and Cafe Ritazza coffee bars in railways stations. Other potential bidders include Elior, the French catering group, and Macquarie, the Australian investment bank. – Sunday Telegraph, 13 November

Guy Hands to bid for SSP
Terra Firma, the private-equity firm run by corporate financier Guy Hands, has appointed CSFB to advise on a £1b bid for SSP, the motorway-services and rail-concessions division being sold by Compass Group. Terra Firma is one of dozens of likely bidders. SSP is also likely to attract interest from trade buyers, including Autogrill of Italy and Sodexho. – Sunday Times, 13 November

Yet another turnaround threat to smoking ban
Labour MPs plan to defy Tony Blair by voting to outlaw smoking in all pubs despite the Government backing away from a total ban. Senior ministers believe the Health Bill, which would allow smoking in pubs that do not serve food, will be beefed up during its passage through Parliament. – The Independent, 13 November

Marks & Spencer may go into contract catering
Stuart Rose, chief executive of Marks & Spencer, is considering plans to take on Compass and Sodexho with a move into the £1b event- catering market. Rose has asked a newly formed M&S team — led by director Richard Flint — to examine the market and report back to him early in the new year. – Sunday Times, 13 November

Irish bidder for Whitbread’s fitness clubs
The Irish-based Next Generation gym empire has been strongly linked with a €1.1b bid for Whitbread's David Lloyd Fitness Clubs. Richard Branson's Virgin Active Group is also said to be interested in the business. Whitbread refuses to be drawn on the matter, although speculation is mounting that a deal may be imminent. – Irish Independent, 13 November

Fearsome TV chefs scaring away potential students
The fearsome reputation of celebrity chefs who reduce their hapless pupils to tears has been blamed for turning young Scots away from food and catering courses. Queen Margaret University College in Edinburgh has decided to shut a department offering food science courses because just a handful of students had signed up. – Scotland on Sunday, 13 November

Shepherd Neame admits £130m bid
Kent-based brewer and pub operator Shepherd Neame has received an outline bid of £130m for the sale and leaseback of its pubs. The pubs have a book value of £103m while the group has a market value of £117m. – Sunday Times, 13 November

Historic inn burned to the ground
A motorist was killed and a historic inn destroyed yesterday after a car left the road, smashed into a wall and burst into flames, setting fire to the inn. The 228-year-old Leadburn Inn, near Penicuik, Midlothian, was hit after the driver of a saloon car apparently lost control at a road junction shortly before 9am. – Scotland on Sunday, 13 November

Former partners head-to-head in Spirit battle
Robin Saunders and Robert Tchenguiz, two of the City’s most colourful dealmakers and former business partners, have gone head to head in a £3b battle to buy Spirit, Britain’s biggest privately owned pub group. – Sunday Times, 13 November

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