Travelodge retains 578 of its hotels

27 November 2020 by
Travelodge retains 578 of its hotels

Travelodge has announced it has retained 578 of its 592 hotels despite an acrimonious company voluntary arrangement (CVA) and competing bids for leases.

This includes 563 hotels in mainland UK, 10 properties in Ireland and Northern Ireland, and five hotels in Spain.

Steve Bennett, Travelodge property director, said: "While the Covid-19 situation has created unprecedented challenges for the whole UK hospitality industry, we have worked closely with our landlords to try to find the best possible path forward. With the overwhelming support and commitment of so many landlords across the country, we now have a strong, diversified and well-invested network that leaves us well-positioned for the recovery. The group would like to thank its landlords for their overwhelming support and will continue to work closely with all its stakeholders over the months ahead."

Travelodge's CVA earlier this year included a break clause allowing landlords to terminate leases and re-let the hotels without penalty with a deadline for the majority 18 November.

The deadline for 36 other hotels is 31 December 2021. According to Travelodge, 13 have confirmed they wish to stay and two have left, leaving 21 to consider their options.

However, now the initial deadline has passed, despite fears an exodus of hundreds of landlords could seriously weaken the brand, AGO Hotels has secured nine Travelodge leases and Premier Inn owner Whitbread snapped up two further properties.

Photo: Shutterstock

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