Lonrho ready to float hotels

The flood of hotel flotations looks set to continue as Lonrho last week announced its intention to spin-off its hotel interests through a stock market listing.

The mining-to-hotels conglomerate has agreed to buy the third stake held by the Libyan government in the five-strong Metropole Hotels group.

This clears the way for Lonrho to seek a stock market listing for its combined hotel interests, which include the US-based Princess Hotels as well as a number of African properties.

Lonrho chief executive Dieter Bock said the flotation preparations were now well advanced. "While the final structure has yet to be determined, it is anticipated that proposals will be put to shareholders in due course," he said.

Operating profit at Lonrho Hotels was up 17% to £27m for the first six months of 1996. Within Metropole, operating profit was ahead 20% to £12m.

Bedroom occupancy was up one percentage point to 65% and room rates climbed 11%.