Budget hotel chain Travelodge has found new operators or new franchisees for 38 of the 49 hotels it agreed to shed under the terms of its CVA and financial restructuring.
The company said that 18 of the hotels would transfer to new operators, including Best Western, Ibis, and Metro Inns. Four of those 18 will become new businesses entirely. The Chester and Coventry Travelodge will be converted into student accommodation, the Stevenage Travelodge is being converted into a conference centre and the Uttoxeter Travelodge is being converted into staff accommodation for JCB. Travelodge said it was attempting to redeploy 15 staff members affected by the change of use of the four hotels.
Meanwhile the hotel chain has signed a new franchise agreement for seven hotels with Moto, the motorway service station company, and 13 other contracts with individual operators.
Travelodge announced in August last year that it would shed 49 hotels that it no longer considered viable as it entered a Company Voluntary Arrangement (CVA). The move was part of a bid to get onto a more stable financial footing, as the company struggled under a £635m debt pile.
The firm stated in January this year that it was confident that "all 49 hotels" would have new operators by the original March deadline. However 11 hotels will continue to be operated by Travelodge, as it works with the properties' landlords to continue the search for new operators.
Travelodge CEO Grant Hearn, said: "It is great news that we have been able to find new operators and introduce franchise contracts for the majority of these hotels. We were always confident that we would secure a future for these properties and the deals that have taken place just demonstrate the huge strength of the Travelodge brand and the success of our operations model."
"Going forward, we are very excited to continue to grow our business, strengthen our product offering and make Travelodge the best value hotel chain in the UK.
Hotels moving to new operators
Reading Oxford Rd
Oldham Manchester St
Edinburgh West End
Harlow North Weald
Hotels moving to franchise contract
Wakefield Woolley South
Wakefield Woolley North
Manchester Birch East
Manchester Birch West
Grantham A1 North
Toddington Services M1
Ipswich Beacon Hill
Hotels Trading as Travelodge until landlord secures new operators
Birmingham Fort Dunlop
Winchester Sutton Scot South
Winchester Sutton Scot North