A round-up of the weekend's news affecting the hospitality industry...
Government still set on smoking ban
Health Secretary John Reid has ordered Britain's publicans and restaurateurs to draw up plans to phase in smoking restrictions across all their premises as the first step towards a blanket national ban. The dramatic ultimatum - made in private to leading representatives of the leisure industry last week - confirms that the government is genuine in its desire to ban smoking in public places. – The Observer, 25 July
Yates buyout saved from collapse
The buyout of Yates Group was rescued from the brink of collapse last night when GI Partners, the private equity firm, raised its offer from 140p a share to 147p, valuing the pub operator at £154m. The raised offer, worth £98.4m excluding debt, came after tense negotiations with the founding family, which had refused to accept 140p in respect of its 20.4% holding, even though it had been recommended by the independent directors. – The Times, 24 July
Whitbread wants to push Travel Inn to 40,000 bedrooms
Whitbread has set itself a target of having up to 40,000 budget hotel bedrooms in the UK after sealing the acquisition of Premier Lodge from Spirit Group for £536.2m. Alan Parker, Whitbread’s chief executive, said that despite the deal he would press ahead with development plans to add 1,500 Travel Inn bedrooms over the next 18 months. “Our ultimate goal is to reach 37,000 to 40,000 rooms over five to six years,” he said. – The Times, 24 July
Thousands of pubs to apply for later licences
Thousands of pubs are to ignore warnings about the dangers of binge-drinking and apply for late licences that will allow many of them to stay open until 4am. Mark Jones, chief executive of the Yates Group, which owns 152 bars, said: “For most pub chains, going from 11pm to midnight is a no-brainer and in the city centres until 3am.” He expects some of his group’s bars in London, Manchester and Glasgow will stay open until 4am. Pathfinder Pubs and JD Wetherspoons are also to apply for late licences. – Sunday Times, 25 July
Whitbread urged to consider selling Pizza Hut and Beefeater
City analysts who follow Whitbread want the board to start a break-up of the disparate leisure brands, and believe that buying Premier Lodge could act as the catalyst. Businesses that could be sold include Pizza Hut, and the pub-restaurant division, which owns Beefeater. Whitbread is also likely to sell its stake in Britvic, the soft-drinks company, through a float, and is seeking buyers for its Courtyard hotel chain. – Sunday Times, 25 July
Scots B&B rebel to campaign for “moral decency”
Tom Forrest, owner of the Scottish bed and breakfast who was struck off the VisitScotland approved listing for refusing a double-bedded room to a homosexual couple, has set up his own “alternative” VisitScotland website and plans to stand for the Scottish parliament to campaign for "moral decency". – The Observer, 25 July
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