Shareholders approve £20m Sleep Inn expansion

CHE Hotel Group has completed its move to raise £20m from shareholders for the expansion of its Sleep Inn hotels in the UK.

The share offer, which opened on 22 December last year and closed yesterday, was passed in a final vote by shareholders this morning.

The company, which operates four separate brands, hopes to use £8.6m to develop Sleep Inns in 60 UK locations.

A further £10m will be used to refurbish and improve the group's 58 owned, managed or leased hotels, which operate in the mid and upmarket sectors under the Comfort, Quality and Clarion brands.

One City source said: "The shareholders have obviously agreed that the money will be put to good use and seem to have done so fairly quickly."

Net proceeds from the sale, underwritten by KBC Peel Hunt, will be £18.6m after expenses.

The group owns two hotels, leases 45 and operates 11 on a management basis.

By Tom Bill

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