Guy Parsons is to step down as chief executive of Travelodge and will be replaced by current executive chairman and former chief executive Grant Hearn.
Meanwhile, Keith Hamill chairman of the business between 2003 and 2010, will also resume his former position as a result of the move.
The reshuffle follows a difficult period for the budget hotel chain, which was taken over by two American hedge funds in February this year, having almost defaulted on its loans of £528m.
Avenue Capital Group and Golden Tree Asset Management agreed to underwrite the £60m required to prevent the business defaulting on its loans of £528m, which would have resulted in Travelodge entering administration.
Parsons will officially leave the company at the end of this week, on Friday 20 April.
Grant Hearn said: "During recent discussions regarding our financial restructuring, the board has expressed their wish for me to lead the business once again. Clearly, as recently has been said, there cannot be two captains running a ship and as a result Guy has decided to leave the company."
"I would like to thank Guy for the great contribution he has made over the past eight years at Travelodge. Guy has been an architect of our successful growth strategy and a true innovator. He will leave behind a business which has very strong plans for improvement and growth."
Parsons said: "This is a good time for me to step down as CEO of Travelodge. I have been privileged to be the company's chief executive for the past two years and I am proud of all that we have achieved in that time. I would like to thank the management and staff of Travelodge for their support and I wish the business well for the future."
Travelodge claims to be the largest hotelier in London, and recently opened its 500th hotel at London Stratford, near to the new Olympic stadium.
By Neil Gerrard
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