XL Leisure invests in Medlife Hotels
XL Leisure Group has made a “significant investment” in online accommodation-only firm Medlife Hotels, acquiring a substantial undisclosed shareholding.
The cash injection will support Medlife Hotels’ growth and to secure exclusive hotel contracts across the Mediterranean and into new destinations, the company said.
The move will enable XL to gain access to the Medlife Hotels bed stock, which will help to grow XL’s flight programme.
Medlife Hotels was formed in July as a subsidiary of the InterArgo Travel Group, which includes Argo Holidays, Medlife Holidays and Jetlife Holidays. InterArgo will remain a substantial shareholder in the business in partnership with XL.
Argo was an initial founding member of medhotels.com and a number of middle management have returned to work with Medlife Hotels.
Managing director George Diamantaras said: “Medlife Hotels is delighted with this cash injection; the growth we have seen since July has been staggering and this investment will allow us to continue to grow at this pace and branch out to new destinations. The accommodation on offer is critical to our success and we envisage securing exclusive contracts throughout key regions.”
Michael Stoney, COO of the tour operating division of XL Leisure Group, said: “This is an exciting opportunity for ourselves and Medlife Hotel’s management which will assist in developing XL’s tour operating activity not only in the UK but also in Europe where we have recently acquired Star Airlines in France and Star Europe in Germany. Both airlines will be re-branded XL France and XL Germany respectively.”
Report by Phil Davies
Phil Davies
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