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Travelodge to develop seven sites with pubs and supermarkets

28 November 2011 by
Travelodge to develop seven sites with pubs and supermarkets

Travelodge has revealed plans to develop a total of seven new sites alongside pub and supermarket companies.

The company exchanged contracts worth a total of £10.4m on four properties where it plans to build hotels alongside pubs operated by JD Wetherspoon, Mitchells & Butlers (M&B) and Greene King.

It also revealed plans to open sites alongside three Waitrose supermarkets in Aylesbury, Sidcup and Vauxhall.

Guy Parsons (pictured), Travelodge chief executive, said: "We are very excited to be co-developing with Waitrose, one of the UK's leading supermarket brands. Having a Travelodge and Waitrose on site offers an attractive proposition for consumers, developers and investors.

"We have an aggressive growth strategy in place and our aim is to have 1,100 hotels by 2025. To fuel our development programme we have capitalised on the UK's supermarkets expansion plans, by co-developing a hotel on top of a Metro style store. We are currently developing or in talks with virtually every supermarket brand in Britain."

Meanwhile, the hotel firm has now exchanged contracts at four sites with pubs, including:

â- King's Lynn. A 68-bed hotel at the junction of Hardwick Road and Nar Ouse Way. Greene King will be opening an adjacent Hungry Horse pub.
â- Stevenage. A 71-bed hotel with an adjacent M&B Miller and Carter pub on Gunnels Wood Road.
â- Fort William. A 60-bed hotel on Fort William High Street. JD Wetherpoon will be opening a 6,000sq ft outlet below the hotel.

In April of this year, Travelodge announced it was seeking a 35-site, £100m expansion programme with the UK's pub companies by 2015.

Travelodge already has hotels co-located with major pub companies at 66 sites across the country and is currently constructing seven further new hotels adjacent to or above new pub-restaurants.

The push to co-locate with pub companies where it is mutually beneficial also follows the successful integration of 52 Innkeepers Lodge Hotels that Travelodge acquired in July 2010, all of which have an M&B pub on site.

Tony O'Brien, UK development director of Travelodge Hotels, said: "The UK's pub companies are the perfect partners for Travelodge on sites where the size of the hotel means it is not viable for us to operate a bar/café, and they provide a great food and drink offer for our customers.

"Teaming up also means that developments that are not affordable for either party individually become available. A number of the operators are now taking standard retail leases on institutional terms, like we do, and the combined hotel and pub development is attractive to banks, funders and investors."

Travelodge targets 100 openings by 2020 for new small hotel concept >>

Travelodge announces new hotel with Arcadia Group and exchanges on 22 properties >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

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