New group plans 12 townhouse hotels

Charles Vere Nicoll, former chairman of Regal Hotel Group, has joined forces with Jonathan Wix, owner of townhouse hotel 42 The Calls in Leeds, to form a new hotel group.

The Scotsman Hotel Group intends to open about 12 hotels in key UK cities such as London, Glasgow and Manchester. European targets include Milan and Lisbon.

It will use an initial £90m secured from venture capitalist Botts & Company and the Bank of Scotland.

"My focus is on townhouse hotels with 60-80 bedrooms and a rack rate of £140," said Vere Nicoll.

He said he had considered buying the boutique chain Malmaison, but his aim was to develop new sites, rather than buy another group.

"Malmaison is a very cleverly branded four-star group, a wonderful product but not quite what we're going for."

Wix, who has become development director, last year acquired the Scotsman building in Edinburgh, former home of the Scotsman newspaper. The group plans to open it as its flagship hotel in early 2001.

Each of the group's hotels will have a separately run restaurant and Vere Nicoll confirmed that some chefs had already been approached about running a restaurant at the 70-bedroom Edinburgh hotel.

Vere Nicoll, who is to be ordained as an Anglican priest this week, resigned from Regal in January amid rumours of a boardroom row with the majority shareholder.

"You are always going to have shareholders to answer to," he said. "I think part of the reason [for leaving] was because I wanted to build something up again."

by Christina Golding