Whitbread, the owner of Premier Inn hotels, has brought in advisers to sell about a third of its lowest-grossing Beefeater and Brewers Fayre pubs, the Times reported.
The news comes a year after the FTSE 100 company appointed Goldman Sachs to review options for its 400-business food and beverage division.
Whitbread was apparently close to selling the business to Beverly Hills-based Platinum Equity, but the deal fell through because the two parties could not agree on a price.
Now the bosses of the hotel giant have asked Christie & Co. to sell 30 to 50 of its worst-performing locations, sources in the City told The Times.
Most of the pubs affected are located next to Premier Inns. Sources added: “A further 100 pubs and restaurants are to be converted into additional hotel rooms for Premier Inns, which are also owned by Whitbread.”
The company is also reportedly considering options for the remaining 250 locations.
Sources close to Whitbread told the outlet over the weekend that “no final decision has been made regarding the property.”
Thanks to the resumption of travel after Covid, the hotel company has been able to achieve good results in recent months.
Hotel room revenues increased 11 percent in the third quarter and total food and beverage revenues were £187.9 million in the third quarter.
The company said that it was able to increase revenue per available room by nine percent through “strong pricing.” Extensive expansion in Germany also proved to be a pillar of the company.
City AM has asked both parties for a statement.
