Iberostar buys Thomas Cook hotels

Thomas Cook said on Tuesday that it has sold its Spanish hotel chain Hotels Y Clubs De Vacaciones (HCV) to Grupo Iberostar for €72.2 million (US$95.4 million) to help cut debt, Reuters reported.

HCV is being sold with net debt of €22.4 million (US$29.3 million) so the transaction will reduce Thomas Cook’s net debt by €94.6 million (US$123.8 million).

The world’s oldest travel firm has been dealing with public perception issues lately as it has been widely reported that the company’s outstanding debt stands at as much as £2.1 billion (US$3.3 billion).