Ennismore confirmed as buyer

New Gleneagles owner retains management and will invest

GleneaglesThe new owner of Gleneagles Hotel and golf resort said today it will retain the existing management and will invest “significant sums” in the Perthshire estate.

Drinks group Diageo confirmed a report in Daily Business last week that it had sold the hotel to Ennismore, a London-based hospitality real estate group and boutique hotelier. The price was not disclosed but was believed to be about £150 million.

Sharan Pasricha, founder and chief executive of Ennismore, said the company will operate Gleneagles as a standalone business alongside The Hoxton brand which it operates in London.

The acquisition is through Ennismore Capital and follows several months of talks with Diageo, which has owned the hotel since 1984.

In 2005 the resort hosted the G8 summit, and was last year in the global spotlight to welcome the Ryder Cup which attracted more than 250,000 visitors and a global television audience.

Ennismore said it will retain the existing Gleneagles management and workforce, “ensuring that Gleneagles continues to play a major part in the local economy in Perthshire and the wider Scottish tourism industry”.

It added: “The new owners are committed to investing significant sums across the estate to build on the resort’s reputation for excellence.”

Mr Pasricha also pledged that the distinct Gleneagles culture, service and brand proposition would be preserved by Ennismore. “We will be proud guardians of this asset, ensuring that the service-levels and visitor experience for which Gleneagles is renowned are preserved and enhanced in the years to come.”

Malcolm Roughead, VisitScotland chief executive, said: “We look forward to welcoming this new and significant investor to Scotland. Following the success of the Ryder Cup last year and the G8 summit in 2005, Gleneagles has established itself as one of Scotland’s most iconic resorts, delighting visitors from across the world with its commitment to quality and excellence – something we are sure Ennismore will strive to continue.

“Tourism is a vital part of the Scottish economy, creating jobs and sustaining communities. We are particularly pleased that Ennismore has recognised, and clearly values, the important role this resort plays both locally and nationally by making an early pledge to invest ‘significant sums across this estate’ to build on Gleneagles’ reputation. We look forward to working closely with them in the future.”

Gleneagles has more than 230 bedrooms, spa facilities and three championship golf courses set in 850 acres of grounds. It includes a two-star Michelin restaurant, luxury lodges and related resort facilities.

The acquisition coincides with the next phase of Ennismore’s international expansion, involving the opening of its new hotel: The Hoxton, Amsterdam. The Dutch site will be followed by Williamsburg, New York (2016), Paris (2017) and London, Southwark (2017).

Diageo will continue to have a relationship with Gleneagles which will see its brands, particularly its world-leading Scotch Whisky brands, continuing to be showcased at the luxury hotel.

It is understood that Ennismore was chosen ahead of KSL Capital Partners, which owns The Belfry, and Ralph Trustees, owner of London’s Athenaeum hotel.

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