Mitchells & Butlers In Hotel Disposal Deal With Travelodge

15th Jul 2010 12:23

LONDON (Dow Jones)--Mitchells & Butlers PLC (MAB.LN) said Thursday it is selling its 52 hotels for GBP91 million, with budget hotel operator Travelodge taking on the leases in a 25 year deal. The U.K. pub group said it was selling the Inkeeper's Lodges--which comprise 2,000 rooms--to Prupim, a property investment arm of Prudential PLC (PUK). Prupim in turn has agreed to lease the hotels to Travelodge, the budget hotel chain for 25 years. All of the hotels are adjacent to Mitchells & Butlers' restaurants and pubs. As part of the deal, Prupim is buying eight of M&B's pubs, which are inseparable from the hotels, and leasing them back to M&B for 25 years. The 52 hotels generated profit of GBP9.5 million in the year. -By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; [email protected] (END) Dow Jones Newswires July 15, 2010 07:23 ET (11:23 GMT)