The Royal York, the 166-bedroom hotel regarded as one of the city's finest, has just been sold.
It is part of a £255 million deal in which the Grand Hotels Acquisition Company has bought out the entire 17-hotel Principal Group based in Harrogate.
The Grand Hotels Acquisition Company, formed and financed by Nomura International plc, now plans to spend £50 million on expansion and refurbishing hotels in the portfolio of Principal, which maintains its brand name.
The Royal York recently opened a £5 million conference and leisure centre extension.
Suzanne Hall, marketing manager for Principal, said: "It will be business as usual for the Royal York and it won't affect the 150 people working there."
Juergen Bartels, former chief executive of Starwood Hotels, has now been appointed executive chairman of Principal Hotels.
Tony Troy, managing director of Principal Hotels, said: "This is a fantastic opportunity for us and provides an ideal platform to extend in the United Kingdom and Europe."
Dustie Binns, manager of the Royal York, said: "It emphasises the confidence shown in York as a national and international conference location."
Updated: 15:22 Tuesday, January 30, 2001
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