THE 300 workers at Southampton's De Vere Grand Harbour Hotel have a new boss today after its parent was bought for £767 million.

The bidding war was bought to an end with an 875p a share bid from the owner of Hotel du Vin and Malmaison chains Richard Balfour-Lynn.

The offer was the third from his Alternative Hotel Group, which first bid 825p, then 850p before the final offer finally drove off the private equity rival Permira.

Mr Balfour-Lynn said last night that he was hopeful of being able to persuade Carl Leaver, De Vere's chief executive, and the rest of the management team to stay on. "We didn't go into this with another management team standing by," he said.

AHG's victory ends a process that began in March when NH Hoteles, the Spanish hotel operator, made an unsolicited approach to De Vere. Starwood Capital, a US investment firm, then entered the fray, although Permira, which had been eyeing De Vere for two years, was in pole position until the late arrival on the scene of Mr Balfour-Lynn.

AHG, which is tipped to keep its existing Verve Venues conference business as a separate company, albeit with some cross-marketing, is expected to expand De Vere's Village Hotels brand but will sell the group's Greens health club chain.