RBS to takeover 46 Whitbread PLC- Marriott International hotels |
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Published
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Wed, 08 Mar 2006 16:55
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LONDON - The Royal Bank of Scotland is said to be in exclusive talks with a joint venture of Whitbread PLC- Marriott International to buy about 46 hotels in the UK, according to an unsourced report in The Financial Times. The deal said to be worth about £1 billion is set for an "imminent" announcement.
The said deal reportedly includes hotels like Grosvenor House on Park Lane and the Waldorf Hilton. These are owned by Whitbread, but are operated by US chain Marriott International. According to sources, the company will continue to run them even after the Royal Bank of Scotland acquires them. RBS already has a fair share in the hotel business courtesy its acquisition of Meridien and Principal groups in 2001.
As far as Whitbread is concerned, the deal will allow it to return £400 million to shareholders. The announcement of this deal would be contrary to what Whitbread Chief executive Alan Parker had said days earlier.
In face of less than pleasing results, Whitbread was expected to offload some of its earnings, but Parker said, "None of our businesses are up for sale." After Parker took over in 2004, Whitbread has sold its stake in UK-based Marriott hotels chain and soft drinks company Britvic.
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