Business Weekly - Cambridge, UK
Tuesday
Jan 06th
HOME 
News News by industry Leisure Whitbread merger could create 800 hotel giant
News News by industry Leisure Whitbread merger could create 800 hotel giant | Whitbread merger could create 800 hotel giant |
| Written by Sam Fountain | |
| Monday, 17 March 2008 | |
 With 65 per cent of the market, the merged company would soar above its competitors The Luton-based company, which has been slim-lining its operations since 2006 with the sale of its TGIF and David Lloyd Leisure brands, is said to be engaged in early stage talks with Dubai International Capital (DIC), the owners of the hotel chain about uniting Travelodge with its brand, Premier Inns. It is thought that DIC, which is currently in talks over the purchase of Liverpool FC, would receive a large stake in Whitbread in the form of cash and equity for its end. Travelodge, which recently announced a 30 per cent rise in earnings for 2007 and predicted continued 'strong trading,' has been valued at £500m-£700m by analysts, and a merger of the two hotel brands could forge a huge force in the industry, representing 65 per cent of the UK budget hotel market. Analysts have also raised doubts about the acceptance of the unity by competition regulators, but added that if it went through, the deal could remove one of Premier Inns' competitors, consolidating its position as the nation's leading budget hotel brand, and providing £10-£20m of synergies. Neither party has chosen to comment on the rumours, but it is understood that Whitbread has been on the lookout for the opportunity to make an approach since it lost out to DIC for the chance to purchase Travelodge at the end of 2006. Despite the news, shares in Whitbread have followed form with the rest of the FTSE, falling marginally to 1183p. |
| < Prev | Next > |
|---|
|
Featured business directory listing
 Dolomite Microfluidics www.dolomite-microfluidics.com Category: Life Sciences |
Latest News
Site Login
Advertisement
 |