LONDON According to a recent Reuters report, Britain s Compass Group is set to sell its 47-strong Heritage hotel chain this week to a team led by Scotland s MacDonald Hotels for #230 million, or $326 million, industry sources said.
The Scottish hotelier has teamed up with the Bank of Scotland to complete the second round of the hotel auction, in which Compass hopes to raise up to #3.5 billion, or $4.99 billion, from its Forte hotel sell-off. The Heritage chain had been initially expected to fetch up to #350 million, or $499 million, but prices have come back after due diligence on the hotel chain, sources added. Compass declined to comment on the auction process.
Last week, Compass wrapped up the first round of the Forte sell-off by completing the sale of four London Signature hotels to three buyers to raise up to a total of #315 million, or $449 million, and is still on track to complete the final two legs of the hotel auction by mid-April. (4/2/01)
SOURCE:Reuters