£150m sale-and-leaseback deal at Jarvis
Hotel group Jarvis has signed a £150m sale-and-leaseback deal on nine of its hotels. Following a statement that said Jarvis was at an ‘advanced stage’ of negotiations with a number of investors, the group has confirmed that it has conditionally agreed to a sale-and-leaseback of several of its hotels to a consortium of private investors.
Proceeds from the £150m deal will be used to return up to £85m to shareholders.
Chairman John Jarvis said: ‘Today’s announcement is a considerable achievement after the disruptions and delays we have had to overcome since first announcing the conclusions of our strategic review more than a year ago. The sale-and-leaseback continues our programme to re-position Jarvis Hotels as a hotel management services group.’
He added: ‘The future for Jarvis Hotels is now clear. We are strategically well positioned as operators of a range of international hotel brands, and are continuing to demonstrate the strength of our management team.’