Abu Dhabi Sheikh Secures Iconic British Hospitality Empire in £1.4 Billion Transaction
For more than a century, The Ivy has been a cornerstone of London's dining scene, serving classic British dishes like fish and chips and shepherd pie to a clientele that has included well-heeled locals and global celebrities. Now, this iconic institution is embarking on a new chapter as its owner, Richard Caring—once famously dubbed the 'King of Mayfair'—sells his entire hospitality empire to an Abu Dhabi sheikh in a monumental £1.4 billion deal.
Details of the Blockbuster Acquisition
Richard Caring's majority stake has been acquired by Diafa, an affiliate of the massive holding company IHC Group. This group is owned by Sheikh Tahnoon bin Zayed al-Nahyan, who serves as the deputy ruler of Abu Dhabi and the national security advisor for the United Arab Emirates. As part of this significant agreement, Diafa will inject a substantial £1 billion investment into the hospitality empire, which boasts not only The Ivy but also the exclusive London private members' club Annabel's.
The Ivy, which originated in the West End, has expanded under Mr. Caring's ownership to include 16 locations across London, as well as restaurants in Wales, Scotland, and Ireland. It has long been a hotspot for the capital's elite, with its mid-century heyday welcoming stage legends such as Laurence Olivier and Vivien Leigh. Diafa and IHC are reportedly keen on expanding the newly popular Ivy Brasserie concept into the United States, signaling ambitious growth plans.
Richard Caring's Legacy and Future Role
At 77 years old, former owner Richard Caring will remain as the executive chairman of the group, according to reports from the Financial Times. In a statement, the mogul expressed confidence that Diafa and IHC would "bring our world-class brands to new markets and continue to elevate our vision for hospitality." This deal represents a rare boost to Britain's hospitality sector, which has been grappling with soaring taxes, stringent regulations, and rising labour costs.
The £1.4 billion valuation of the collection of restaurants and clubs—which also includes Harry's Bar, Scott's George, and Mark's Club—significantly dwarfs last year's earnings. Troia (UK) Restaurants, representing the restaurant portion of the businesses sold, posted adjusted earnings of £58 million on a turnover of £303 million last year.
From Rags to Riches: Caring's Remarkable Career
Richard Caring's journey from humble beginnings to hospitality titan began in the clothing industry before he purchased the Caprice Holdings group for £31.5 million in 2005, launching his restaurant business. He is widely regarded as the most successful investor in upmarket hospitality assets of his generation. A flamboyant figure, Mr. Caring made headlines in 2019 when he paid £150,000 to dine with Boris Johnson at his own venue, Mark's Club, and previously donated to the Conservatives during a fundraiser where he sat next to then-Prime Minister Theresa May.
During the pandemic in 2020, Mr. Caring demonstrated his philanthropic side by pledging to feed thousands of NHS workers and vulnerable individuals. Through his restaurants' kitchens, in partnership with The Felix Project—London's largest food redistribution charity—he helped distribute 5,000 meals weekly to hospitals like Chelsea & Westminster and St Thomas', aiding isolated elderly people and families in need.
The Buyer's Profile and Strategic Vision
On the buyer's side, Diafa will be led by Ravi Thakran, the former chair of LVMH’s Asia business. The IHC affiliate already commands an extensive hospitality portfolio, including high-end restaurants like Zuma and Roka from the Azumi Group, as well as the Los Angeles-based hospitality company h.wood Group. Sheikh Tahnoon, the brother of President Sheikh Mohamed bin Zayed, oversees IHC, which is the most valuable company on Abu Dhabi’s stock exchange, with around 1,500 subsidiaries spanning from property development to chicken farms after years of rapid expansion.
This acquisition marks a pivotal moment for The Ivy and its associated brands, blending British culinary heritage with international investment prowess. As the deal unfolds, stakeholders await further comments from Mr. Caring, The Ivy Collection, and IHC, with the hospitality world watching closely to see how this iconic empire evolves under new ownership.
