Barclay twins end four-year legal battle over hotels

The billionaire twins sold their stake to the Qataris, ending one of the biggest co-owner feuds

A four-year legal battle over the Barclay brothers’ attempt to take full control of the hotels Claridges, the Berkeley and the Connaught has ended as the billionaire twins sold their stake to the Qataris.

Sir David and Sir Frederick Barclay sold their 64 per cent stake in Coroin – the holding company for the Maybourne Hotel Group – after failing to force the group’s other shareholder, Paddy McKillen, to give up his stake.

The move ends one of the biggest corporate feuds between co-owners, and both sides revealed that the share sale to the Qatari group, Constellation Hotels, would trigger the end of multimillion-pound lawsuits between them.

In 2011 the Barclays, already owners of the Ritz, launched an audacious raid on the rival hotel businesses by seizing control of almost two-thirds of voting rights in Coroin from the financier Derek Quinlan in a complex legal agreement.

When they attempted to force Mr McKillen into selling his longstanding stake, he refused, and a war of attrition began, played out through years of intricate legal arguments.

Last night Mr McKillen declined to comment.

A spokesman for the Barclay brothers said they were “pleased to have concluded this transaction and that Maybourne Hotel Group is now majority controlled by Constellation Hotels Group.

“We have also reached an agreement to ensure an end to any litigation related to Maybourne Hotel Group so that there is a clear focus on investing in the continued success of these iconic hotels.

“The business has performed strongly during the four years of our involvement, and this has been a very successful investment for us.”

Last month, Abu Dhabi’s leading sovereign wealth fund suggested it was keen to buy the hotels for £1.6bn, after writing to the board of Coroin, but this was not followed up.

The terms of the deal were not disclosed but based on the offer from Abu Dhabi, it would value the Barclays’ stake at just over £1bn.