LONDON— Just five contenders are thought to be left in the race to snap up the Travelodge and Little Chef businesses put up for sale by contract catering giant Compass earlier this year. The final shortlist is believed to consist mainly of venture capital firms, including Sun Capital, a new group formed by Punch Taverns founders Hugh Osmond and Alan McIntosh, and Apax. Starwood Hotels has also been mentioned as a potential bidder for Travelodge, but some observers think the firm unlikely to bid for a budget chain, as its core business is in upmarket hotels, according to a recent report on caterer.com. A spokesman for Compass— which could get between £600 million (US$938.5 million) and £1 billion (US$1.6 billion) for the businesses— said reports of a shortlist were premature. SOURCE: caterer.com
