Consolidation creates strength

Two UK listed property Reits have agreed a merger that will create a larger, leisure and hospitality focused landlord – and one with a larger leverage over the UK Travelodge business. 

The move to combine Secure Income Reit and LXi Reit is indicative of a shift to greater scale and improved operating efficiencies that is starting to be seen across the piece, as businesses emerge from the pandemic and ponder how to remain profitable in the face of new financial headwinds. In the hotel space, third party operators and smaller chains are eyeing up ways to combine, providing a broader base from which to face inflation and rising costs. 

READ THE FULL ARTICLE HERE: Consolidation creates strength | Hotel Analyst