Budget hotels back on market
Travelodge chain put up for sale with £1 billion price tag
Goldman Sachs, Avenue Capital and Golden Tree Asset Management are understood to have appointed advisers to look at options for the business which they bought from Dubai International Capital which acquired it for £675m in 2006.
A sale, however, could be up to a year away, according to reports in the City, while the future of the company is determined.
Travelodge has 40 hotels in Scotland and is the biggest operator in Edinburgh. Expansion plans unveiled last year, taking it into Falkirk, Hamilton and Motherwell, will add 900 rooms to the 2,700 it already has north of the border.
It has 501 hotels and around 38,000 rooms across the UK and plans to open 15 more. The expansion follows a restructuring in 2012 led by KPMG which left creditors sitting on huge losses and landlords asked to accept big rent reductions. The deal was backed as a preferred option to administration.
It meant 49 hotels being put up for sale. The hotel in Edinburgh’s Shandwick Place was bought by industry newcomer Sleeperz, while the Belford Road venue in the city’s west end was taken over by a new operator.
Two hotels, in Ayr and Kilmarnock, were taken on by individual franchisees but operated and managed by Travelodge.
Picture: Travelodge, St Mary’s St, Edinburgh