Dixon Hospitality set to secure Keystone

Bruce Dixon's Dixon Hospitality Group has emerged as preferred bidder for the bulk of the assets in the Keystone Hospitality Group, the Australian Financial Review has reported.

Dixon is building scale ahead of a $300 million-plus initial public offering in 2017.

Keystone Hospitality collapsed in June after failing to renegotiate lending arrangements with financiers KKR and Olympus Capital.

It owns 17 restaurants, cafes and bars including the Jamie's Italian chain as well as Bungalow 8, Cargo Bar, Chophouse Perth, Chophouse Sydney, Gazebo, and Kingsleys Brisbane and Woolloomooloo.

Dixon Hospitality Group is led by Michael Dixon, the son of former Spotless chief Bruce Dixon.

It now owns almost 40 pubs, hotels and restaurants, including 505 Wine Room in Toorak, the Tap House at Sydney Airport and the Oxford Tavern in Sydney's Petersham.