The Times newspaper has reported that Mitchells & Butlers is to kick start its asset disposal programme by selling 55 Innkeeper’s Lodges to Prupim, part of Prudential, for £90m.
Prupim is believed to be leasing the lodges to economy hotel operator Travelodge. The pub chain will retain ownership of the majority of the lodge’s adjoining pub-restaurants. Six of the pub-restaurants being sold to Prupim will be leased back to Mitchells. The sale of most of its 80-plus lodges is the first stage of an asset disposal programme, ordered by John Lovering, who was made chairman in January. Mitchells is also selling its chain of Hollywood Bowl chain, 34 bars and brassieres in Germany and up to 300 drink-led pubs. The disposals will allow it to concentrate on its food-led concepts.