Budget hotel group, Travelodge, has raised £128m through the sale and leaseback of 17 of its UK hotels.
The properties were sold to real estate company Prestbury property group at the weekend. Travelodge will continue to run the hotels under 25-35 year leaseback contracts.
The company said it will use £100m of the proceeds to repay debt and will invest the balance in growing the business.
Jon Mortimore, Travelodge finance director, said: "This leaseback releases extra funds to really drive the growth of our business. There are significant opportunities to step up expansion in the UK both through accommodation and new revenues through our online business. This transaction provides us with the flexibility to bring forward and accelerate our growth plans."
Nick Leslau, Prestbury's chairman and chief executive, said "We are delighted to have added to our existing portfolio of Travelodge hotels and are very pleased to have concluded another deal with the team at Travelodge."
Travelodge currently operates over 300 hotels in the UK.
By Emily Manson
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