Hotel News Resource Mobile Edition



« | »

Choice Considers Sale of its Majority Stake in Friendly Hotels

June 22, 2001 – HVS International

Choice Hotels International is considering the sale of its 70% stake in Friendly Hotels, the company which holds the European franchise for Choice Hotels Europe and runs over 500 Quality Inn, Comfort Inn, Sleep Inn and Clarion Hotels.

Choice is understood to have received a number of approaches from parties interested in acquiring all or part of its holding in the company. Meanwhile, Friendly is said to be examing whether such approaches could lead to an offer that would reflect the company's strong asset base and its growth prospects.

Friendly has recently completed a major capital restructuring which was deemed necessary to keep the business afloat. Friendly has also agreed to a new ten-year deal with Choice, providing it with much greater flexibility.

Furthermore, Friendly has announced plans to significantly reduce its gearing throug the sale of 13 non-core properties worth £36.4 million. Such changes have resulted in the company's net asset value increasing to £45.3 million, although since the collapse of its share price in 1999, the company is valued at around £7.2 million.

London Plaza Hotels acquired a 10% stake in Friendly earlier in the year and is thought to be a likely contender. Whitbread has also been cited as a potential bidder.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * *

HVS in 2000: Celebrating 20 Years of Valued Hospitality Consulting Service

This release is courtesy of HVS International, a global full-service hospitality consulting company. HVS International's numerous services including market studies & valuations, development consulting, litigation support, asset management,and more. Investment advisory services are available in the UK, Africa, Europe and the Middle East.

To Visit The HVS International Web Site Click Here

To subscribe to HVS Hospitality Enews, a free weekly newsletter, please send contact details to:
enews-europe@hvsinternational.com

Posted by on February 11, 2006.

Categories: Trends

« | »




Recent Posts


Pages