Whitbread looks at Lloyd sale

WHITBREAD is considering demerging its David Lloyd Leisure chain of fitness clubs.

Chairman Sir John Banham (above) told Financial Mail that when the timing was right, the leisure giant would spin off the 56 fitness clubs and offer separate shares in David Lloyd.

He said: 'There are no obvious synergies between David Lloyd and the rest of the group. But it is a great business and we will continue to invest in it until we feel that it would be more sensible to float it off.'

David Lloyd Leisure, headed by managing director Stewart Miller, was founded in 1982 by former Davis Cup tennis captain David Lloyd and bought by Whitbread for £200m in 1995.

It has more than 320,000 members and is aimed at the out-of-town, family sector and specialises in racket sports.

Whitbread's other brands include the Marriott and Premier Travel Inn hotel brands, Costa Coffee and restaurant brands Brewers Fayre and TGI Friday's. It also has a part-share in the Britvic drinks company, which is likely to be floated this year.