Whitbread says it is in “advanced discussions” to buy Premier Lodge from Spirit.
It is believed to have offered at least £25m more than rival bidder Apax Partners.
A combination of Premier Lodge with Whitbread’s Travel Inn chain would create a 440-strong budget hotel chain.
The price is rumoured to be about £540m. An announcement is expected by the end of next week.
References: Financial Times 21/07/04 page 23, The Guardian 21/07/04 page 17, The Times (Compact) 21/07/04 page 40 (Need to know), The Daily Telegraph 21/07/04 page 29
