Premier Inn owner Whitbread ends merger talks with rival Travelodge

19 March 2008 by
Premier Inn owner Whitbread ends merger talks with rival Travelodge

Premier Inn owner Whitbread has ended merger talks with budget hotel rival Travelodge killing off a potential £3b tie-up.

In a statement to the stock market today Whitbread said that, following speculation of a tie up between Premier Inn and Travelodge, preliminary talks had indeed taken place.

However it added that these discussions had now ended. The statement said: "Premier Inn is the largest hotel company in the UK. Whitbread will continue to make significant investment to grow Premier Inn in both the UK and internationally."

Premier Inn is already the UK's largest hotel chain and is Whitbread's biggest and best performing business. A tie-up would have created a budget hotel group with 800 hotels.

Last year Whitbread coughed up £21m to rebrand its budget hotel empire from Premier Travel Inn to Premier Inn to avoid confusion with rival Travelodge.

Travelodge is owned by Dubai International Capital (DIC), the private equity group owned by the Arab Emirate's ruling sheikh.

Whitbread to merge with Travelodge? >>
Budget Hotel bonanza (Caterer Blog) >>

Huge growth predicted for budget sector >>

Whitbread to spend millions rebranding Premier Travel Inn >>
Travelodge unveils aggressive expansion strategy >>

By Chris Druce

E-mail your comments to Chris Druce here.

The Caterer Blog]( Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
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 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