>LONDON (Dow Jones)–U.K. pub group Mitchells & Butlers PLC (MAB.LN) Thursday took the first major step in its new management’s business strategy, selling its 52 hotels for GBP91 million, with budget hotel operator Travelodge taking on the leases in a 25-year deal.
The U.K. pub group said it was selling the Inkeeper’s Lodges, which comprise 2,000 rooms, to Prupim, a property investment arm of Prudential PLC (PUK).
Prupim in turn has agreed to lease the hotels for 25 years to Travelodge, the budget hotel chain owned by Dubai Holding’s investment arm.
The deal is the first under M&B’s new strategy of selling non-core assets to focus on expanding its key brands.