A leading hospitality chain is set to be sold to US investors for £338 million. For those hospitality investment planning in Oswestry, nearby Telford’s Novello Lounge is just one of a number of cafe bars owned by Loungers, across Shropshire and the wider West Midlands, that are included as part of the deal.
US investment firm Fortress Investment Group said it had been attracted to Loungers’ ‘strong and differentiated position’ as embodied by its portfolio of complementary brands. This follows sales growth and expanded regional reach in recent years at a time when the wider hospitality sector has faced significant challenges.
It reaffirmed its commitment to Loungers’ expansion plans, which include the recent acquisition of cinema brand Curzon. Fortress is no stranger to the UK market, having previously invested in Majestic Wines and Peach Pubs & Co. With this new deal, they will be looking to partner with Loungers in pursuing ambitious growth targets.
For his part, the chairman of Loungers, Alex Reilley, highlighted how the group had evolved since launching in 2002 with one brand and one site. It now owns three brands and operates across 280 sites, and on the back of strong half-year results, the group is confident about its economic prospects across the region. He added that he was immensely proud of the work of his hospitality teams and the impact they have had on UK high streets.
The deal will be concluded subject to approval from Loungers shareholders.
