XL Leisure Group has taken a majority shareholding in online accommodation-only provider Medlifehotels giving it access to exclusive contracts in the Mediterranean and new destinations.
The tie-up is expected to enable XL to grow its flight programme by giving it access to the bed stock owned by Medlifehotels, that was formed in 2006 as a subsidiary of the InterArgo Group and includes brands such as Argo Holidays, Medlife Holidays and Jetlife.
Managing director George Diamantaras said: “Medlifehotels is delighted with this cash injection. The growth we have seen since July has been staggering and this investment will allow us to continue to grow at this pace and branch out to new destinations.
“The accommodation on offer is critical to our success and we envisage securing exclusive contracts throughout key regions.”
InterArgo will remain a substantial shareholder following the deal with the XL group, which consists of XL Airways Group and the recently acquired Star Airlines in France and Star Europe in Germany that will be rebranded XL France and XL Germany.
Chief operating officer of the group Michael Stoney said: “This is an exciting opportunity for ourselves and medlifehotel’s management which will assist in developing XL’s tour operating activity not only in the UK but also in Europe.”