TRAVELODGE SELLS LITTLE CHEF FOR £52 MILLION TO CONCENTRATE ON BUDGET HOTELS
20th Oct 2005
TLLC announced last November that it intended to seek a new owner for Little Chef, who would be better placed to fulfil the long-term potential of the roadside restaurant business. TLLC will now use the proceeds to further invest in major expansion plans for Travelodge – the UK’s fastest growing hotel company.
The Peoples Restaurant Group Ltd has acquired the Little Chef brand and 235 restaurants. This includes 113 restaurants on sites shared with or adjacent to Travelodge hotels, locations which are strategically important within Travelodge’s food and beverage strategy. TLLC has been able to negotiate mutually satisfactory arrangements for the future operation of these restaurants.
Travelodge CEO Grant Hearn commented:
“We are delighted to agree the successful sale of Little Chef, which secures the future of the business under the ownership of a dedicated and experienced restaurant operator.
Our disengagement from direct ownership of restaurants means that Travelodge is now purely focused on budget hotels and we can now concentrate on extending our leadership position as the fastest growing hotel company in the UK.
Combining the sale proceeds and cash received from site disposals, we have generated a significant return from our original investment. This will be invested in fast-tracking Travelodge’s growth by adding 3, 000 new rooms each year for the next 6 years.”
The Peoples Restaurant Group Ltd is owned and managed by catering industry entrepreneurs Lawrence Wosskow and Simon Heath. They are the co-founders of the Out of Town Restaurants Group Ltd (OOTG) that is today ranked the 9th largest UK restaurant group.
Simon Heath, CEO of The Peoples Restaurant Group Ltd, commented:
“We are delighted to have completed the purchase of Little Chef. The unique appeal of the Little Chef brand is the strength of its name and its key roadside locations. The potential for this business is enormous and we look forward to bringing the brand back to where it used to be by creating a restaurant business that exceeds our customer’s expectations in terms of variety, quality and value.”
Mark Hutcheon /Tom Wyatt, ReputationInc
Tel: 020 7758 2800/ Mob: 07739 181 352
Notes to the Editor:
- Lawrence Wosskow and Simon Heath founded the Out of Town Restaurants Group Ltd (OOTG) in 1998 and expanded it rapidly to over 100 multi-format units with a turnover in excess of £35 million and 1, 500 employees. They sold the business to a management buy in team backed by Penta Capital in December 2002.
- TLLC Group Holdings Ltd is owned by Permira, one of the largest private equity specialists in Europe.
- Following a strategic review, Travelodge determined that Little Chef lay outside its core budget hotel business and announced on 24 November 2004 plans to sell the restaurant business.
- Little Chef is the UK’s leading roadside restaurant business with 235 outlets across the country, attracting more than 20 million loyal customers every year. It employs approx 4, 000 employees.
- Travelodge Hotels Ltd has 269 hotels across the UK and is the UK’s fastest growing and most recognised budget hotel group according to BDRC 2005. The budget hotel sector is forecast to grow 50% by 2010.
- Travelodge hotels are situated in both city centres and roadside locations. Each year, over six million people stay with Travelodge. In addition to the UK, Travelodge has hotels in Ireland and Spain.
- Travelodge offers low-cost quality accommodation, with room rates available from £26 per night. Travelodge is focussed on delivering a smart choice for consumers, offering them a good night’s sleep at a great price, without the unnecessary extras and costs typical of other hotels.
- Further information on Travelodge can be found at www.travelodge.co.uk