Real Hotel Company to quit London

14 July 2008 by
Real Hotel Company to quit London

The Real Hotel Company announced that it is to sell its three London hotels for £18.6m, removing itself completely from the capital.

The transaction is expected to be completed over the next four months and will be used to cut its debt by £14.5m.

The rest of the proceeds will provide the group with a further working capital of £3.5m, after paying expenses incurred.

Chairman Peter Catesby said the transaction enabled the company to "realise the long term value of its businesses more quickly than we anticipated", whilst continuing to aggressively develop its budget Purple hotel brand.

"We regard our exit from the London market as a temporary situation," he said. "We have an active development pipeline already in place with over 2,000 rooms under offer and becoming a largely de-leveraged business will enhance our ability to deliver this plan".

The Real Hotel Company is owner, operator and developer of branded hotels in the UK and Europe and operates 58 owned, leased or managed hotels in the UK and Europe.

The company, which launched budget brand Purple Hotels earlier this year, operates Quality, Comfort and Clarion properties under franchise agreements.

Real Hotel Company launches budget brand >>

Real Hotel Company launches first Purple hotel in Scotland >>

Boss of Real Hotel Group takes a swipe at rivals >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

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