Quality hotels for sale in fund-raising deal
15 May 2002 by Ben Walker
Hotel group CHE, formerly Friendly hotels, is putting four of its Quality hotels on the market for sale and leaseback.
It aims to raise about £21m to reduce debt and fund refurbishment and expansion.
The first hotel to be sold is the 155-bedroom Quality hotel in Hull. The asking price is £7.25m.
Norwich (80 bedrooms), Sunderland (82 bedrooms) and Welwyn Garden City (96 bedrooms) will go on sale this month, subject to shareholder approval. Under the deals, CHE will lease back the hotels and continue to operate them.
Finance director David Cook said: "We believe the group should not continue to be the owner of property."
Most of its hotels are run under lease or franchise agreements.
Source: Caterer & Hotelkeeper magazine, 16 - 22 May 2002
