Premier Hotels has bought Oriel Leisure, the Express by Holiday Inn hotels operator, for pounds 42m.
Premier currently opens one new hotel a week, and the acquisition adds eight additional hotels. Premier chief executive officer Latif Horton said the deal reinforces the message that Premier intended to become a major player in the budget hotel sector.
'Oriel's eight hotels will join Premier's own stable of six Express by Holiday Inn properties giving us an unprecedented 1,600 hotel rooms in the brand,' said Horton.
The Oriel hotels include properties in Peterborough and Manchester.