Birmingham’s Paragon Hotel looks set to be transformed following its acquisition by an Iraqi investor.

The 250-room hotel, a Grade II-listed building, has been acquired off a £6 million guide price by Namir Al Akabi.

Mr Al Akabi, whio is estimated to be worth £1.3 billion, was among the first in a new wave of entrepreneurs who capitalised on new business opportunities in Iraq after the 2003 war.

He built up the Baghdad-based Almco Group of Companies, which also has offices in Dubai, Amman, Kuwait, Cairo, India and London.

Almco employs 17,000 people and provides a range of services, from sanitation to construction, and manufacturing to logistics.

Mr Al Akabi is also owner and chairman of Amwaj International, a real estate subsidiary of Almco.

It owns Baghdad Gate in Iraq’s capital, a development which includes a five-star hotel, 3,500 residential units and a shopping centre.

The deal was brokered by specialist property adviser Christie + Co on behalf of the joint administrators of Paragon Hotel (Birmingham) Limited and Paragon Birmingham Limited (both in administration), Sarah Rayment and Antony Nygate of BDO.

The sale of the hotel, in Alcester Street, Digbeth, which was originally built as a hostel for Irish migrants to the city, was announced in January.

It attracted substantial interest, according to Gavin Wright, director of Christie + Co.

“This imposing Victorian Gothic building was previously part of the Dhillon Hotels group, and generated enormous interest resulting in a highly-competitive, ‘best and final’, offers process,” he said.

Speaking about plans to refurbish it he added: “We understand that the new owner plans to breathe some further life into this fine hotel with a full refurbishment, which should guarantee its success well into the future.”

The hotel had attracted interest from five hotel operators and other suitors and went on the market after Dhillon Hotels called in administrators last October.

Speaking at the time it was put up for sale Mr Wright said interest in acquiring it had come from both hotel operators and wealthy individuals.

Located close to the city centre, the Paragon boasts 13 function rooms, with the largest having a capacity of 600.

At the time it was put up for sale 207 of its 250 bedrooms were in use and Mr Wright said it offered great potential in terms of increasing its conference facilities.

Originally built in the early 20th century for Irish migrants, the building was a hostel for many years before being converted into a hotel in the 1990s.

Dhillon Hotels, which promised to invest £50 million when it took over the Paragon in 2006, called in administrators from BDO after succumbing to “difficult trading conditions”.

The hotel, which was taken over by Singapore firm Cockpit Hotels in 1997, has seen a healthy mix of both corporate and leisure business in recent years.