Stefan King of Scotland-based G1 Group Holdings has launched a new leisure company - EH1 Limited - in partnership with fellow entrepreneur Kenny Waugh of Festival Group.

The new business has assumed ownership of a series of leisure assets in Edinburgh, such as Biddy Milligans and Grassmarket Hotel; Bank Hotel; and the Murrayfield Hotel. Waugh has become chair of EH1 under the terms of the agreement, as well as receiving a seat on the board of the company that oversees G1 Group Holdings' core assets.

The formation of EH1 is designed to strengthen G1 Group Holdings' existing portfolio and help the company to expand its presence along the east coast of Scotland. King said: "I've been keen to work with Kenny for some time and I am pleased to be able to join him in strengthening Edinburgh's leisure market.

"No-one knows the city's bars, hotels and clubs better than him and to have his in-depth knowledge and experience at Board level will be of enormous benefit."