24 June 2010

Battle of the budget brands

Budget hotel brands Premier Inn and Travelodge have butted heads again this week as the former’s owner Whitbread suggested it would "have a look" at buying the latter when economic conditions improve.

Travelodge’s owner private equity firm DIC has been under financial pressure and outgoing Whitbread chief executive Alan Parker has told newspapers that his company would take a fresh look at Travelodge.

But Travelodge executive chairman Grant Hearn said there was no chance of a sale, saying: "I don’t see that there is any reason for Whitbread to think they’d be able to acquire this business."

"DIC understands the business cycles and is aware that trading — and values — should recover in the next 18 months. It knows there is no need to do anything precipitous."

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