AGO Hotels has added yet another Travelodge hotel to its growing UK portfolio, this time in Peterhead, Aberdeenshire.
The building is a recent hotel conversion, which has operated under the Travelodge brand since May 2017. The 63-bedroom property will rebrand under Accor's Ibis Budget brand and AGO said it is continuing to see interest in its hybrid lease structure, as well as having discussions outside of the Travelodge portfolio.
AGO Hotels was launched in July last year by Lionel Benjamin and Viv Watts following Travelodge's CVA and Watts' experiences as a Travelodge landlord, which urged him to set up the Travelodge Owners Action Group.
AGO snapped up nine Travelodge leases in November and Premier Inn owner Whitbread picked up two, although the majority – 578 – decided to stick with the brand. Around 20 properties are understood to be still considering their options with a break clause in their lease available until the end of the year.
AGO Hotels said: "This is an exciting addition to AGO Hotels' growing UK portfolio. The current lockdown is providing a real opportunity for hotel owners to re-evaluate their business models. We are being contacted by asset owners up and down the country, interested in our disruptive lease structure and our combined offer of downside protection coupled with significant profit participation.
"The economy hotels sector is best positioned to recover quickly as sector restrictions ease and confidence returns to the market. The AGO Hotels team is looking forward to welcoming guests to our new hotel in Peterhead as soon as possible."