Leisure group Thistle is to sell more than half its portfolio of hotels in a deal worth more than £600m, it was announced today.
The Leeds-based group has agreed to sell 31 regional and six London hotels to Gamma Four, a subsidiary of venture capital firm Euro & UK Property.
The £600.4m deal comes just days after Leeds-based Thistle blamed the most challenging conditions in the tourist industry since the Gulf War for a sharp fall in final full-year profits.
The sector has been rocked by foot-and-mouth, the global economic slowdown and 11 September.
But chairman David Newbigging said today: “By concentrating on delivering growth through our core hotel management business, with a reduced emphasis on the capital intensive ownership of hotel properties, we expect to benefit from increased operating flexibility.
“This transaction significantly strengthens our balance sheet and leaves us well placed to pursue potential strategic acquisitions opportunities for further growth and development.”
The six London hotels included in the sale are Thistle Lancaster Gate, Thistle Bloomsbury, Hendon Hall, Cannizaro House, Thistle Kensington Park and Thistle Kensington Palace.
The deal will leave Thistle, which currently has 56 hotels across the UK, with 16 venues in the capital. The Thistle Heathrow and Thistle Edinburgh will not be included in the sale.
EGi News 12/03/02
