Paddy McKillen earns £3.5 million from Maybourne

Payment suggests claim property developer had arrangement with Qatari investors

The Maybourne group – comprising the luxury London hotels Claridge’s, the Berkeley and the Connaught – netted Belfast developer Paddy McKillen £3.5 million last year. Photograph:  Yui Mok/PA Wire

The Maybourne group – comprising the luxury London hotels Claridge’s, the Berkeley and the Connaught – netted Belfast developer Paddy McKillen £3.5 million last year. Photograph: Yui Mok/PA Wire

 

Property developer Paddy McKillen earned a management fee from the Maybourne group last year of £3.5 million, according to accounts recently filed in England for its holding company, Coroin.

The payment appears to bear out a claim by the Telegraph-owning Barclay brothers, made at the height of their bitter struggle with Mr McKillen, that he had an arrangement with Qatari investors for an annual payment of up to £5 million should they take over the hotels.

The Maybourne group – comprising the luxury London hotels Claridge’s, the Berkeley and the Connaught – was at the centre of a tug-of-war between Mr McKillen and his fellow former Coroin shareholders, the Barclay brothers.

Mr McKillen prevailed in their battle last spring, however, when the Qatari royal family bought the Barclays and McKillen’s interests in Coroin, although the Irish developer was kept on as adviser.

Battle

In 2012, at the height of their battle, a lawyer for the Barclay brothers suggested Mr McKillen had negotiated the £5 million side deal. The Qataris owned the hotels for three-quarters of 2015, so the £3.5 million payment would correspond with £5 million for a full year.

Mr McKillen was unavailable for comment on the payment last night.

The Coroin accounts show turnover was up 4.7 per cent to £160 million. The hotels made a loss before tax of £1.4 million, down from £5 million.

The hotels, which have undergone major renovation, are among the most prestigious in London. Earnings at Claridge’s were up 17 per cent and by 5.4 per cent at the Berkely. Revenues were up 3 per cent at the Connaught.

The hotels generated revenue per available room (Revpar – a standard industry metric) of £503.