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Issue 25 : July 31st 2008
Premier Inn pokes Express
Whitbread has swooped on 21 Express properties in the UK to convert to its Premier Inn badge. And the non-cash deal with pub group Mitchell & Butlers, valued at £78m, may be followed by more transactions.
M&B still has its Innkeeper’s Lodge chain and it said that this 80-plus chain is among the “non-core” assets where it hoped to “create additional value”.
Rezidor on course to hit margin target
Despite the slowdown in trading, Rezidor last week said it was confident of hitting its EBITDA margin target of 12% thanks to the ongoing shift in its business model.
The company said visibility was short – two months at best – and the 7% to 8% revpar growth it had enjoyed in the first half was likely to slow but it would not fall into negative territory.
Starwood slashes forecasts
Starwood cut its forecasts for the second half of this year and said it expects the downturn to continue into 2009.
Despite a strong first half, the company is poised to implement a range of cost cutting measures, including “a hard look at corporate costs”.
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