Palace Hotel owner changes hands

PRINCIPAL Hayley, the owner of Manchester’s Palace Hotel, has been bought by the US-based Starwood Fund.

The group has 23 hotels including Cranage Hall in Holmes Chapel, Cheshire.

It is understood to have changed hands for around £360m.

Most of the cash will go to Lloyds which took control of the business from private equity group Permira in a debt-for-equity swap in 2010.

Chief executive Tony Troy said: “We are pleased with the opportunity to work with Starwood Capital, which has extensive experience in the hospitality sector and a very strong track record. We look forward to the future development of the group as a platform for growth.”