Travelodge landlord threatens legal action over rent payments

Travelodge has been accused of “using strong-arm tactics” to “tear up leases” as a landlord threatens legal action to secure rent payments from the hotel giant.

Combined Property Control Group (CPCG) has threatened legal action, arguing the group is receiving government support and should not be penalising landlords, The Sunday Times reports.

Ben Rose of Cooper Rose Real Estate, representing CPCG, told the newspaper that Travelodge could not “plead poverty and tear up leases using strong-arm tactics”.

Travelodge had written to landlords warning that the group will be forced to pursue a company voluntary agreement (CVA) if an agreement over rent could not be reached. In the letter, seen by * The Caterer*, the group's proposals include rent cuts of up to 63%, with a return to full rent by the end of 2021, and the offer of lease extensions.

Travelodge, which employs around 10,000 people, estimates that the combination of hotel closures, sites unable to reopen until 4 July at the earliest and a predicted slow recovery will mean more than £350m in lost revenues for the business – the equivalent of 18 months' rent.

The letter said: "The overall position that confronts us now poses even greater challenges for the months ahead than any of us could have expected… While we appreciate this is a substantial temporary reduction for some landlords, we believe that it is the best outcome possible in view of the current situation."