Whitbread gets ready to streamline Swallow
SWALLOW Hotels could resurface as a smaller hotel company if Whitbread decides to dispose of some of the hotels it acquired in its £578m takeover of the group last year.
It is understood that former Swallow chief executive Peter Catesby, who is on so-called gardening leave until September, is considering leading a management buyout of some of the hotels that Whitbread may wish to dispose of.
Catesby, who will receive just under £800,000 as a result of exercising share options he held with Swallow, is expected to approach City investors to fund a deal involving at least 10 hotels with a view to float the new company.
Whitbread executives are in the process of assessing the portfolio of 38 hotels to select those which would not fit with the Marriott hotel brand.
A spokesman said: "If there are any that cannot be brought up to the Marriott standard we would consider selling these."
Hotels that may be deemed unsuitable include the 122-bedroom Imperial in Newcastle upon Tyne and the 45-bedroom Eden Arms hotel at Bishop Auckland in County Durham.
When asked about his future plans, Catesby said that he was considering a number of options. He added: "I love hotels. I feel I am far too young to hang up my boots and dig the garden."
by Christina Golding