LEISURE group Whitbread is giving up control of its Marriott UK hotels in a deal that will raise at least £1bn over two years.
Whitbread has agreed to set up a joint venture with Marriott International, the US owner of the brand, which will hold the four-star and five-star hotels until they are sold.
Under the terms of the deal, it will put 46 hotels in the UK, offering 8,102 rooms, into the joint venture. Six are in London, 31 in the regions and nine are classified as country clubs.
The deal will take in the company's hotels at Gosforth Park, Newcastle, Sunderland, and another near the Gateshead MetroCentre.
It will receive £710m this year with the balance of the transaction depending on the proceeds of the final disposal of the hotels, which it has operated under a franchise agreement since 1995.
The move will see £400m returned to shareholders via a special dividend and enables Whitbread to focus on the budget hotel sector, where its Premier Travel Inn chain leads the market with a 40 per cent share.
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