14 Dec 2011

Hotel chain sold by travel company

9:32 am on 14 December 2011

million) to reduce debt.

Thomas Cook has sold a Spanish hotel chain for 72.2 million euros (£61

million) to reduce debt.

The BBC reports Hotels Y Clubs De Vacaciones is being sold to Grupo Iberostar. Its net debt was 22.4 million euros and the sale will cut Cook's net debt by 94.6m euros.

Thomas Cook is looking to restore the confidence of tourists and investors.

Last month it secured £200 million in new financing Barclays, HSBC, RBS and UniCredit until 30 April 2013.

The world's oldest travel company earlier blamed unrest in Egypt and Tunisia and floods in Thailand for hitting sales.