Travelodge arranges £10m overdraft
Travelodge has been forced to arrange a £10m overdraft facility while it renegotiates its debt structure involving borrowings of £850m.
The debt - made up of £480m of bank borrowings and £370m of long-term bonds - stems back to 2006 when the budget hotel company was bought by Dubai International Capital (DIC).
While Travelodge, which currently has 496 hotels in the UK, Ireland and Spain, continues to trade well and plans to open 41 hotels this year, the debt has had some impact on the company's profitability.
Travelodge declined to comment on the company's current state of borrowing.
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By Janet Harmer
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