LONDON According to sources close to the deal, Compass Group Plc s Posthouse hotel chain will go to Bass Plc for about 800 million pounds, or $1.1 billion.
The news comes after months of various lodging firms bidding on Compass Group Plc s hotel assets, which have been on the block for some time. The group s Le Meridien and Heritage chains are also expected to change hands in the near future. The Signature chain was recently sold in parts.
While the transaction has not been confirmed spokespersons for both Bass and Compass declined to comment sources close to the deal said that it may be announced as early as this week.
The Posthouse hotel chain consists of 79 locations in Britain and Ireland. Some said the hotels, which are concentrated in city centers and airports, would make easy conversions to Bass Plc s Holiday Inn chain.
It has also been rumored that Compass is close to selling its 47 luxury Heritage hotels to Macdonald Hotels Plc and Bank of Scotland. The hotels are located throughout southern England.
Le Meridien is expected to fetch the highest price of all the Compass hotel chains. The four-star chain is made up of 146 luxury hotels in various European cities. (4/3/01)
SOURCE: Bloomberg News