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Travelodge teams up with fitness chain The Gym Group

12 November 2012
Travelodge teams up with fitness chain The Gym Group

Budget hotel group Travelodge is teaming up with low-cost fitness chain The Gym Group to develop 10 hotels alongside leisure facilities in London and the South East.

The £70m expansion plan over the next five years follows previous joint developments between the two companies in Guildford, Plymouth, London Waterloo and Wembley.

The two companies believe there is plenty of opportunity for expansion as only 16% of the hotel market and 4% of the leisure sector are covered by budget options.

Paul Harvey, managing director, international and development, at Travelodge said the existing locations with the Gym Group have worked "enormously well" for both parties.

"It makes absolute sense for us to look for, and secure, sites together. This really helps us with our growth plans for London and the South East.

"Given the space requirements of both companies, as well as our compatible business models, it really is the perfect fit: The Gym Group on the ground or lower ground floor and Travelodge on the floors above."

John Treharne, chief executive The Gym Group, added: "The increasing popularity for budget alternatives across a number of sectors reflects the wider consumer market's demand for value."

Travelodge currently operates more than 520 hotels in the UK, Ireland (12) and Spain (four), and plans to grow its portfolio 1,100 hotels 2025. Meanwhile The Gym Group has 27 sites, with a further five opening by the end of the year.

Travelodge creditors approve CVA >>

Travelodge to offload six hotels >>

First offer deadline for six Travelodge properties up for sale >>

By Janet Harmer

E-mail your comments to Janet Harmer here.

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