Business This article is more than 19 years oldShakespeare hotel sold in £120m deal
This article is more than 19 years oldA Japanese bank has snapped up the privately owned four-star Menzies Hotels chain, which has 14 properties across Britain, in a deal worth £120m.
Nikko Principal Investments announced it was buying the business to take it to its "next level", which is likely to involve the acquisition of further luxury hotels.
Founded in 1992 by Nick Menzies, a former Thistle Hotels executive, the Menzies chain stretches from Edinburgh to Salcombe in south Devon.
A £50m flotation failed in 1998 due to a lack of interest from the City and the business subsequently found backing from two private equity firms - BancBoston Capital and Indigo Capital.
Mr Menzies, who will retain a 17% stake under the business's new ownership, said: "This is to provide an exit for the existing investors and to introduce a high quality financial institution which can take the business on to its next level."
Menzies' properties include the Welcombe hotel in Stratford-upon-Avon (pictured) - a Jacobean mansion on a 157-acre estate which includes land owned by William Shakespeare.
Mr Menzies said future purchases would be assessed on the grounds of "quality, rather than quantity". He added: "We don't jump on every red bus which comes past our doorstep."
The deal represents Nikko's first venture into hotels in Britain. The Japanese institution owns the Roadchef chain of mo torway restaurants and has invested in British hospitals and ports.
Brian Berry, the chief executive of Nikko Principal Investments, said: "Menzies represents an exciting opportunity for Nikko to build a substantial position as an owner and operator of upscale hotels within the UK."
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