Brussels checks out Premier Lodge bid

TRAVELODGE is filing for approval from European competition regulators to take over the Premier Lodge chain of budget hotels being sold by pubs group Spirit.

It indicates the seriousness of Travelodge in the £450m takeover race and follows Whitbread subsidiary Travel Inn's application for UK Office of Fair Trading approval of its takeover plans.

Travelodge is owned by venture capital group Permira, whose Europe-wide investments mean the decision on competition implications lies with Brussels watchdogs.

The group, which also owns Little Chef, is keen to expand its operations into town centres, so it can complement its existing strong presence in roadside locations.

Travel Inn and Travelodge are Britain's top two budget hotel operators and hope regulators will view such chains as part of the wider hotels and B&B market, rather than a sector in itself.

Spirit inherited Premier Lodge when it bought Scottish & Newcastle's pubs and restaurants. The first-round bid deadline is the end of this month.