Mitchells & Butlers has sold most of its lodge business and eight pubs for £91m, as part of its move to dispose of non-core operations.
The move - foreshadowed here earlier in the week - involved the company selling 52 lodges and eight pubs attached to them, most of them to real estate manager Prupim, part of Prudential. As part of the deal Travelodge will operate and lease the 52 lodges, while M&B will lease back the eight pubs. M&B will make a £3m contribution to the rental charges for the lodges, leaving net proceeds of £88m which will go to reducing debt and for capital investment in its priority brands. M&B shares have climbed 1.4p to 310.8p on the news.
