Stella Travel Services UK is to operate as a stand-alone business following a restructure of its Australian parent company, Stella Group.
Stella Group has demerged its travel and hospitality operations to create two separately managed, financed and independently operated businesses.
Stella Hospitality Group continues to operate its portfolio of more than 140 resorts, hotels and apartments encompassing the Peppers, Mantra and Breakfree brands.
Meanwhile the Stella Travel Services Group will be run as two separate business units - Stella Travel Services Australia/New Zealand, and Stella Travel Services UK, which includes Travel 2, Travelbag.co.uk and Global Travel Group.
Stella Hospitality Group and the Stella Travel Services Group will continue to be majority owned and controlled by funds advised by CVC Asia Pacific.
As a result of the recapitalisation, Stella Hospitality Group has assumed A$245 million of long-term debt. Stella Travel Services Australia/New Zealand has assumed A$40 million of long-term debt, and Stella Travel Services UK will have no debt other than existing bonding.
Stella Group Chairman, Andrew Cummins, said: “We have completed the restructuring and recapitalisation of the group, ensuring each of Stella Hospitality Group and the Stella Travel Services Group has a solid balance sheet, access to substantial liquidity and most importantly, a solid and stable platform to grow as the hospitality and travel markets recover, following challenging market
conditions over the past 12 months.”
Andrew Botterill, Chief Executive Officer of Stella Travel Services UK, said the restructure was a very positive move.
“This restructure and recapitalisation has a significant positive impact on our balance sheet, and has been welcomed by regulators, industry bodies and key trading
partners. It will also provide certainty and confidence for the individual businesses who are connected to Stella Travel Services through our various retail networks and to the many independent agency groups that continue to support Travel2. The vote of confidence from our investors and parent company in the UK market is a very positive message for the industry overall.”
There are no changes for clients, suppliers and agents working with Stella Travel Services UK as a result of the corporate restructure.