STAKIS Hotels will be rebranded under the Hilton name if a ú1.16bn bid for the Glasgow-based chain is successful.
Hilton International parent company Ladbroke Group is recommending its shareholders make a cash and share offer for Stakis, which has 54 hotels, 22 casinos and 67 LivingWell health clubs – 22 of them in Hilton properties.
Hilton currently has 38 hotels and five casinos in the UK.
If the deal goes ahead, it is expected to be completed by early April. City analysts had expected counter bids from other chains but the most likely contenders, Accor and Whitbread, have ruled themselves out.
One City analyst said:”It now looks like a cosy little deal between Ladbroke and Stakis.”
Outlining its plans, Ladbroke said it would integrate Stakis’ UK customer database into the Hilton HHonors customer loyalty programme and bring Stakis under Hilton’s global reservation system.
It expects the integration of the two chains will lead to savings of at least ú16m in the year ending December 2000.
Ladbroke intends to keep a presence in Stakis’ head office in Glasgow, but would not say how many of the 200 staff would be retained.
Under the proposed deal, Stakis chief executive David Michels would replace Hilton International chief executive David Jarvis and join the Ladbroke board.
Stakis hotels managing director Anthony Harris would join Hilton’s senior management but his exact position has not been confirmed.