CHE puts £20m into Sleep

22 December 2005 by
CHE puts £20m into Sleep

Branded hotel operator CHE Hotel Group is to raise nearly £20m through a share placing to fund expansion of its Sleep Inn hotels in the UK.

The company, which operates four separate brands, hopes to use £8.6m of the money raised to develop Sleep Inns in 60 locations in the UK.

CHE Hotel Group chairman Peter Catesby said the group's recent opening of the Sleep Inn hotel in Tewkesbury, Gloucestershire, had shown demand for this type of limited service accommodation.

"Today's equity raising will enable the group to exploit that opportunity over the coming years, while allowing for standards to be raised in the remainder of the group's existing hotels where required," he added.

A further £10m will be used to refurbish and improve the group's 58 owned, managed or leased hotels, which operate in the mid-market full-service and upmarket full-service sectors, under the Comfort, Quality and Clarion brands.

The group owns two hotels, leases 45 and operates 11 others on a management basis.

The net proceeds from the placing, underwritten by KBC Peel Hunt, will be about £18.6m. Dealings in the shares should start on 18 January.

By James Garner

Get your copy of Caterer and Hotelkeeperevery week -

Sudoku Join the craze and play Sudoku online!
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking