Two-Michelin-starred chef Michael Caine has bought the Royal clarence hotel in Exeter in partnership with hotelier and entreprenaur Andrew Brownsword for more that £4.5m.
The 34-year-old Devon-born chef has headed the hotel's food and beverage operation since late 2000.
The three-star, 56-bedroom Royal Clarence, a grade II-listed building in the centre of Exeter, was one of 25 properties out on the market in January by previous owner Corus & Regal Hotels.
Caines said he had been hoping to buy the hotel for more than a year. He was unhappy about the standard of the bedrooms, which he said had been starved of investment for 15 years and fell far short of the standard set by the restaurant.
He said the restaurtant was turning over £2m a year, while the hotel was making £900,000.
The partners plan a major refurbishment of the hotel into a boutique property. Work will begin next year, and is expected to cost more than £1m. "It's been like one big dream, I'm still pinching myself," said Caines.
Brownsword, who created the successful Hallmark Cards printing business, owns the Bath Priory and Sydney House hotel in London's Chelsea.
Caines said the new venture wouldn't diminish his cooking commitments to Gidleigh Park in Chagford, Devon, nor to the Michael Caines at the Bristol Royal Marriott restaurant, which was launched in June.
Source: Caterer & Hotelkeeper magazine, 30 October - 5 November 2003