Annabel’s owner sells Mayfair empire in £1.4bn Abu Dhabi deal

Richard Caring has sold a majority stake in the business behind Annabel’s, the Ivy and a string of London’s most exclusive restaurants to an Abu Dhabi-backed investor in a deal valuing the group at around £1.4bn.

The buyer, Diafa, is a luxury hospitality platform linked to International Holding Company (IHC), chaired by Sheikh Tahnoon bin Zayed al-Nahyan, as Gulf capital continues to target high-end UK assets.

The transaction includes a portfolio of some of Britain’s best-known hospitality brands, including The Ivy, Scott’s, Sexy Fish and private members’ clubs such as George and Mark’s Club.

Caring will remain as executive chairman, while the new owners are expected to push ahead with international expansion plans, including taking the Ivy concept to the US and opening Annabel’s in New York.

The deal brings an end to a prolonged sale process that began in 2023 and faced multiple delays, with doubts growing over whether a transaction would be completed.

Luxury resilience amid sector strain

The £1.4bn valuation reflects the strength of the group’s premium positioning, despite a challenging backdrop for the wider hospitality sector.

Troia Restaurants, which houses much of the business, reported earnings of £58m on £303m in revenue last year, suggesting investors are betting on long-term brand value and global growth rather than near-term trading conditions.

Those numbers clash with struggling UK hospitality firms, who have been grappling with rising labour costs, higher taxes and persistent energy price volatility, squeezing margins even as demand remains uneven.

Political pressure has also been building for further tax relief, with industry figures warning that current cost burdens risk undermining growth.

While Annabel’s recently reported a sharp rise in profits, it also flagged rising wage costs and increased borrowing, underlining the financial pressures facing the sector.

Gulf capital reshapes UK hospitality

The acquisition marks another step in Abu Dhabi’s broader push into global luxury and leisure assets.

IHC has rapidly expanded its footprint across industries from energy to tech, and is increasingly targeting premium hospitality brands with international appeal.

Through Diafa, it already has exposure to restaurant groups including Zuma and Roka, and the addition of Caring’s portfolio strengthens its position in the top tier of global dining.

The deal also highlights a wider shift in ownership of UK assets, where verseas investors, particularly from the Gulf, are playing an increasingly prominent role in backing British hospitality, real estate and leisure businesses, drawn by established brands and the potential for global rollout.