Following takeover by Goldman Sachs and New York hedge funds Avenue Capital Group and GoldenTree Asset Management last month, a majority of creditors have voted in favour of the CVA which will see rent reductions with landlords at more than a fifth of its 500-strong estate, while a further 49 hotels will be transferred to new operators.
Over the next six months, Travelodge will see rents reduced by a quarter at 109 hotels and the transfer of a further 49 establishments to new operators after 97% of creditors and 96% of landlords voted in favour of a Company Voluntary Agreement (CVA). Last month the hotel chain was taken over by Goldman Sachs and New York hedge funds Avenue Capital Group and GoldenTree Asset Management as part of a business restructuring programme to tackle its debt.The £709m debt write-off and £75m of new equity provided by the lenders will enable a £55m refurbishment across 175 Travelodge hotels.Brian Green, restructuring partner at KPMG, which is supervising the CVA, said: ‘We are pleased that landlords have recognised that the CVA will deliver a better return to them and estimate creditors will receive a return of 23.4p in the £1, versus the 0.2p in the £1 they would have received if the business had been forced into administration.”
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