Von Essen Hotels snaps up Cliveden

THE £800-a-night country house hotel renowned for Christine Keeler's poolside frolics during the Profumo scandal in the 1960s has been sold in a £50m deal.

Cliveden, the 35-bedroom luxury hotel overlooking the Thames in Berkshire, has been bought by upmarket operator Von Essen Hotels. The purchase price also includes Cliveden's sister hotel, the Royal Crescent in Bath.

The deal, completed late on Tuesday night, comes five months after 65% owner investment bank Lazards said it was putting its stake up for sale. The other shareholders were an investment vehicle for Microsoft boss Bill Gates and Lowe Enterprises, a US property developer.

The Lazards-led consortium paid £42.8m for the 152-year-old former Astor family home in 1998, but it is thought to have struggled financially in recent years. The most recently filed accounts for Cliveden's parent company Destination Europe reveal that it made an £11.2m loss in 2000.

The new owners already operate a portfolio of six country house hotels including Ston Easton Park and Thornbury Castle, both near Bath. The company plans to spend about £5m modernising Cliveden over the next two years, adding a 'state of the art' health spa. All 350 staff, including Cliveden's Michelin-starred chef Mark Dobson, will be retained by Von Essen.

The new owner's operations director Nicholas Romano said: 'We have taken control of both hotels. Cliveden and the Royal Crescent very much fit in with our portfolio. Cliveden is the finest country house hotel in Great Britain.'

The mansion, built by Houses of Parliament architect Sir Charles Barry in 1850, is one of the favoured weekend haunts of City bankers. Set in 375 acres of National Trust gardens, it is regarded as one of the the ultimate luxury retreats. The ratio of staff to rooms is four to one. The most expensive let is the Lady Astor suite - at £800 a night bed and breakfast.