Premier Inn adds another 21 hotels

Source/Contact: e-tid, 31/07/2008

Whitbread is to acquire 21 Express by Holiday Inn hotels from Mitchells & Butlers in exchange for 44 of its pub restaurants.  The exchange will be made on the basis of equivalent earnings before interest, taxes, depreciation and amortisation of about £9m from the hotels and pub restaurants and an estimated value of £78m for the assets to be exchanged.  Whitbread said the transaction was expected to be earnings neutral in 2009/10 and earnings enhancing thereafter.  The hotels, which currently offer a total of 1,245 rooms, will be converted to Whitbread’s Premier Inn budget brand, taking its UK portfolio to over 38,000 rooms in 550 properties.