UK travel and tour operator First Choice is hoping bookings at its newly acquired web-based hotels site will grow by more than a fifth this year.

As it seeks to move away from reliance on the tough package holiday market, First Choice bought the hotel booking site for £108m. It may pay an additional £12m for the purchase, depending on Laterooms' performance.

Peter Long, chief executive at First Choice, said: "Operating in a high growth sector, we see considerable opportunity to increase Laterooms' future profitability even further.

"It has a distinct business model serving a niche market segment at low cost. This increased range of accommodation already available in the group will strengthen its position and give international scalability."

Get the full story at Guardian Unlimited