ICP unit to acquire Travelodge trade mark in Asia for A$3m
Nisha Ramchandani
ICP's wholly owned subsidiary, ICP (IP), has entered into a sale of trade marks agreement with budget hotel group Travelodge to acquire the registered trade mark rights to the hotel brand name Travelodge in Asia for A$3 million (S$3.51 million).
This covers 22 territories and countries in the region but excludes Australia and New Zealand.
The sum of A$3 million will be fully satisfied in cash, said ICP in a release to the Singapore Exchange yesterday.
Explaining the rationale for the acquisition, ICP said: "The company regards the acquisition as an opportunity to gain access to an established international mid-scale hotel brand. Travelodge hotels operate in the limited service sector, a market sector which has considerable growth potential in the pan Asian markets. Limited service hotels are also more cost effective to both develop and operate."
It also said that it has been evaluating various potential business opportunities.
There are currently over 900 hotels named Travelodge operating globally.
For the six months ended Dec 31, 2013, ICP reported a net loss of $286,000, narrowing from $815,000 previously, while revenue was up from $1.42 million to $3.44 million. Shares in ICP closed at 1.6 cents yesterday, down 0.1 cent.
