Travelodge considers walking away from 50 hotel sites as part of restructuring

14 August 2012 by
Travelodge considers walking away from 50 hotel sites as part of restructuring

Budget hotel chain Travelodge is considering walking away from 50 of its sites to help tackle its £500m debt burden.

The company is understood to be looking at asking landlords to accept a company voluntary arrangement (CVA) as part of a wider restructuring, according to reports in the Times.

However no jobs are thought to be at risk because the hotels involved would be transferred to new operators over the next year.

Should the landlords of the hotels accept the deal, it is expected to form part of a wider financial restructuring which will see American hedge funds Avenue Capital and GoldenTree Asset Management joining US bank Goldman Sachs to take over ownership from Dubai International Capital.

Travelodge is thought to be trading well but is struggling to deal with its £500m of debts, accrued during a buyout spree before the financial crisis set in.

A Travelodge spokeswoman said: "We are restructuring our debts at the moment but nothing has been decided. In this type of process there are lots of conversations that take place and a lot of options around the table but at this stage we haven't confirmed anything."

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to jobs

Looking for a new job? Find your next job here with jobs

Blogs on ]( Catch up with more news and gossip on all Caterer's blogs
[E-newsletters]([ For the latest hospitality news, sign up for our E-newsletters
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking