Principal Hayley takes back Palace hotel

NORTH Yorkshire hotels group Principal Hayley has taken back six hotels it had previously owned on a long lease in a £200m deal.

The company has taken back six hotels including The Palace in Manchester, the Royal York, the Leeds Metropole, the George in Edinburgh and the Selsdon Park in Surrey on a 175-year lease.

It had sold the hotels to London-based investor aAIM, which was backed by Bank of Scotland, in 2006 in a deal which was worth £275m under a deal which allowed Principal Hayley to continue managing the properties under a 25-year agreement.

However, the new deal has seen fund manager Pramerica purchase the freeholds to the hotels and then grant 175-year leases on the properties to Principal Hayley.