Travelodge sells off Irish franchise

Budget hotel chain Travelodge has sold its eight properties in Ireland to a privately owned company for €22.15m (£14.9m), in a deal that could see the chain doubling in size in the country in the next five years.

Smorgs, which is run by local entrepreneurs Seamus McGowan and Richard O'Sullivan, has also bought the franchise for the Travelodge brand within Ireland.

Travelodge, owned by venture capital group Permira, said the deal would allow it to retain a presence in Ireland and committed Smorgs to expanding in the country.

Smorgs has said it intends to double the size of the chain, which currently has a total of 520 bedrooms, in the next five years.

Grant Hearn, Travelodge chief executive, said: "This is an excellent deal for Travelodge which allows us to achieve our strategic goals to grow the brand internationally whilst enabling us to focus on the growth of the brand across the UK."

McGowan added: "To further strengthen and develop the brand it is our intention to open and operate additional properties under the Travelodge banner during the coming years."

Travelodge operates two properties in Dublin, with further properties in Waterford, Cork, Limerick, Galway, Belfast and Derry.

The agent for the transaction was CB Richard Ellis Hotels.

by Nic Paton

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