LONDON— Thistle Hotels announced it is selling 37 of its hotels to a subsidiary of of the Orb Estates property group for $853 million. The hotels, which include six in London, will continue to be managed by Thistle. Thistle said it will use the proceeds to pay back debt and build up an acquisitions “war chest,” according to a report in the Evening Standard. “This disposal represents a further significant step in the re-positioning of the company and both improves and rebalances Thistles hotel portfolio,” said David Newbigging, chairman of the company which owns 55 hotels and manages another property. Ian Burke, CEO, declined to say whether a share buyback was a possibility. Burke said the deal would reduce the capital intensity of the business, strengthen the balance sheet and leave Thistle in a good position to make acquisitions, according to the report. The deal requires the approval of shareholders.
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