Whitbread sells Marriott hotels to Royal Bank of Scotland |
|
|
Published
:
Sun, 23 Apr 2006 07:35
|
LONDON: Royal Bank of Scotland is acquiring 46 Marriott-branded hotels from a joint venture of leisure firm Whitbread Plc. and Marriott International Plc.
Announcing the deal, Whitbread said in a statement the transaction valued the joint venture at 951.4 million pounds and that it would receive some 237 million pounds as its final share of the proceeds, while Marriott will receive 100 million pounds. Whitbread has already received 710 million pounds under an agreement when the joint venture came into being.
Whitbread now completely exits the four-star Marriott business and intends to concentrate on its budget hotels. It had set up the joint venture in March last year as a prelude to this exit.
Alongside, Whitbread also said it is selling the Leicester Marriott hotel development to Royal Bank of Scotland for 30 million pounds.
The Edinburgh-based Royal Bank of Scotland said the hotels will continue to be managed and operated by the U.S. hotel chain, Marriott International. The bank has 12 hotels it had already bought from Le Meridien in May 2001 for 1.25 billion pounds. It has leased the properties back to the hotel company.
Whitbread has a chain of restaurants, hotels and fitness clubs in Britain, It also owns Pizza Hut, Premier Travel Inn and David Lloyd Leisure.
Whitbread will pay an extra 400 million pounds to investors, in addition to a 400-million-pound special dividend agreed in 2005.
|
|
|
|
|
|
|
| Stock
Quotes * |
|
NASDAQ
|
|
1386.42 |
-96.85 (
-6.55 %)
|
| SYMBOL (
2008-11-20 ) |
| LAST |
CHANGE
|
|
NEXT
(
11:35am )
|
|
970.00 |
+40.00 (
4.43 %)
|
|
LONMIN
(
11:35am )
|
|
734.00 |
+9.50 (
1.36 %)
|
| SYMBOL (
2008-11-19 )
|
| LAST |
CHANGE
|
|
INTEL CP
(
4:00pm ) |
|
12.49 |
-0.62 (
-4.75 %)
|
| SYMBOL (
2008-11-19 )
|
| LAST |
CHANGE
|
|
|
Print this Story
BoE rate cuts in early August? 