Former owner Diageo announced today it had sold Gleneagles Hotel Limited to a private investment group led by Ennismore for an undisclosed amount, though Sky News has reported the deal to be worth more than £150m.
Diageo has owned the five-star Gleneagles Hotel in Perthshire since 1984, but put it up for sale in February this year. In the year ending 30 June 2014 the business generated revenues of £43.5m and an operating profit of £2.6m. The hotel recently spent £750,000 on its Gleneagles Arena event space, which opened to the public in May.
Ivan Menezes, chief executive at Diageo, said: "Diageo is proud to have been the owner of Gleneagles but the hotel is not a core business for us and therefore following the success of the Ryder Cup we feel this is an appropriate time to realise value through this transaction. I am pleased that Diageo's brands, especially our scotch brands, will continue to be an important feature at this iconic Scottish hotel. We wish Ennismore and all the staff at the hotel a successful future."
Bernard Murphy, managing director of The Gleneagles Hotel, added: "We very much look forward to working with Ennismore, and are excited about the possibilities of this new chapter in Gleneagles’ history. We have enjoyed a great relationship with Diageo over the last three decades, culminating in the hosting of what has been described as ‘the best ever Ryder Cup’ on the PGA Centenary Course last September.
"Looking ahead, the business is going from strength to strength and bookings for the summer period are very strong. This is in no so small part thanks to the hard work of our team of 900 dedicated staff. For the moment our priority is, as always, to provide fantastic customer service and memorable experiences for our guests, so that Gleneagles can continue to flourish in the future. In the meantime, it's very much business as usual for our members, staff and guests, and forward bookings will be unaffected."
Ennismore has seen off rival bidders KSL Capital Partners, owner of The Belfry, which was expected to make a £150m bid for the hotel in April.
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