Thomas Cook Swoops for Medhotels

Thomas Cook is strengthening its position in the bed bank sector with the purchase of Medhotels from lastminute.com.

The deal, for an undisclosed sum, will make Thomas Cook the UK leader in accommodation-only following its purchase of Hotels4u.com almost a year ago. The sale of Medhotels follows industry predictions of further consolidation in the bed bank sector.

The Medhotels acquisition, due to be completed next month, includes Hoteltransfers, Holiday Hotels and its German business. Lastminute bought Medhotels in a deal worth £16.1 million in 2003.

Paul Riches, sales and marketing director at rival youtravel.com, said: “The long-awaited completion of the Medhotels acquisition by Thomas Cook represents a step-change in the accommodation-only sector as another player is taken over by one of the big conglomerates.