Holiday Inn deal gives Bass 36% of largest US hotelier

Bass has sold 47 Holiday Inns and 14 management contracts to Bristol Hotel, a Dallas-based hotelier, in a deal that gives the British brewer a 36 per cent stake in what will be North America's largest owner-operator of full-service hotels.

As well as the share stake, Bass will receive $91m (pounds 55m) in cash from Bristol, which is also paying down $300m of Bass's debt, putting a total value of $659m on the hotels. Sir Ian Prosser, Bass chairman, said the deal was in line with its strategy of expanding its Holiday Inn franchise and withdrawing from the direct ownership of hotel properties.

Under the Holiday Inn franchise system hoteliers, who retain management and ownership of the hotels, pay a signing-on fee to join and a percentage of annual sales for the computer reservation system and marketing.

Holiday Inn Worldwide operates or franchises more than 2,200 hotels and 380,000 guest rooms in around 60 countries. It is the world's largest single hotel brand.

Bass said it would appoint two directors to the board of Bristol and Holiday Inn would continue to own and manage its Crowne Plaza hotels in North America.

The transaction more than doubles the size of Bristol. Formerly called the Harvey Hotel Company, it owns and operates 39 primarily full-service hotels in seven states with a total of 10,187 rooms. Founded in 1981, the company employs more than 4,500 staff.

The 61 hotels transferred, which have a book value of $638m, generated profits of $69m in the financial year to 30 September after payment of franchise fees. Bristol will spend $150m on the properties over the next three years. Bass said the deal would have no significant effect on its earnings.

Bass said it was in talks with Bristol over the possible sale of these Holiday Inn hotels in North America last week.

Bass is putting Holiday Inn through a modernisation programme in an attempt to bring the 43-year-old chain up to date. The programme requires all hotels that have not been upgraded since they joined the system prior to 1989 to modernise or leave.

In the year to September, Holiday Inn Worldwide reported a 15.4 per cent rise in operating profit with strongest growth coming from Europe, the Middle East and Africa. During the year the Holiday Inn chain grew from 2,080 hotels to 2,249.

The disposal of most of its American managed hotels is Bass's first corporate move since its attempted bid for Carlsberg-Tetley was put on ice by Ian Lang, President of the Board of Trade, who referred the pounds 200m deal to the Monopolies and Mergers Commission. The deal would have returned Bass to its position as Britain's biggest brewer.

voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
Life and Style
fashion Designs are part of feminist art project by a British student
Arts and Entertainment
The nomination of 'The Wake' by Paul Kingsnorth has caused a stir
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
Arts and Entertainment
Residents of Derby Road in Southampton oppose filming of Channel 4 documentary Immigration Street in their community
voicesSiobhan Norton on why she eventually changed her mind
ebookA unique anthology of reporting and analysis of a crucial period of history
Scottish singer Susan Boyle will perform at the Commonwealth Games opening ceremony in Glasgow
commonwealth games
Arts and Entertainment
Dwayne 'The Rock' Johnson stars in Hercules
filmReview: The Rock is a muscular Davy Crockett in this preposterous film, says Geoffrey Macnab
Life and Style
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

PMO Analyst - London - Banking - £350 - £400

£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...

Cost Reporting-MI Packs-Edinburgh-Bank-£350/day

£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...

Insight Analyst – Permanent – Up to £40k – North London

£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...

Test Lead - London - Investment Banking

£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...

Day In a Page

Noel Fielding's 'Luxury Comedy': A land of the outright bizarre

Noel Fielding's 'Luxury Comedy'

A land of the outright bizarre
What are the worst 'Word Crimes'?

What are the worst 'Word Crimes'?

‘Weird Al’ Yankovic's latest video is an ode to good grammar. But what do The Independent’s experts think he’s missed out?
Can Secret Cinema sell 80,000 'Back to the Future' tickets?

The worst kept secret in cinema

A cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Facebook: The new hatched, matched and dispatched

The new hatched, matched and dispatched

Family events used to be marked in the personal columns. But now Facebook has usurped the ‘Births, Deaths and Marriages’ announcements
Why do we have blood types?

Are you my type?

All of us have one but probably never wondered why. Yet even now, a century after blood types were discovered, it’s a matter of debate what they’re for
Honesty box hotels: You decide how much you pay

Honesty box hotels

Five hotels in Paris now allow guests to pay only what they think their stay was worth. It seems fraught with financial risk, but the honesty policy has its benefit
Commonwealth Games 2014: Why weight of pressure rests easy on Michael Jamieson’s shoulders

Michael Jamieson: Why weight of pressure rests easy on his shoulders

The Scottish swimmer is ready for ‘the biggest race of my life’ at the Commonwealth Games
Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn