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Travelodge pursues its financial restructuring

2 min reading time

Published on 08/04/13 - Updated on 17/03/22

After the debt restructuring completed last October, the economic chain announced the signing of franchise agreements for 20 of its establishments and a change of operator for another 18 of its hotels. It is searching in parallel for new operators for the rest of its properties that are losing money.

Travelodge is on the verge of finalizing the first phase of its financial restructuring, which consists of breaking the leases of its 49 hotels that are losing money.

The economic chain has announced the signing of a franchise agreement with hotels in the UK and 13 other franchises with independents. It keeps the management of the hotels in question.

Travelodge has also found new operators and a brand loss for 18 of its establishments affected by the restructuring, such as Best Western, Ibis and Metro Inns. Four of these properties are changing activity: two will be converted into student housing, and the other two to meeting rooms and accommodation for staff.

The British chain continues to work closely with the owners of the 11 remaining properties to find new operators, hoteliers or not. Meanwhile, they continue to operate under the Travelodge brand.

"It is great news that we have been able to find new operators and introduce franchise contracts for the majority of these hotels," said Grant Hearn, Travelodge CEO. "We are very excited to continue to grow our business, strengthen our product offering and make Travelodge the best value hotel chain in the UK".

Travelodge has recently implemented a renovation program of $ 65 million and today, nearly 50% of the supply has been renovated. This figure is expected to reach 90% in autumn 2014. By the year 2025, the group hopes to continue its development to achieve 1,100 hotels, as opposed to 490 today.

Travelodge

Travelodge

Hotel Group

  • Travelodge United Kingdom
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