Two-handed fight for ownership of Travelodge
The future ownership of budget hotel group Travelodge, which is being fought over by two USA private investment companies, is expected to be settled by the end of the month.
Starwood Capital and Apollo Global Management are believed to be the frontrunners for the business, which is worth around £1.5b, according to The Sunday Times. A final bid deadline has been set for the end of November.
The sale of Travelodge has been prompted by a turnaround in fortunes for the company after it was sold to Goldman Sachs, Avenue Capital and GoldenTree Asset Management by Dubai International Capital, having entered a Company Voluntary Arrangement in 2012 .
In the company's most result full year results, the group reported a 14.9% rise in total revenues to £497.2m for the year 31 December 2014, and EBITDA up 63.5% to £66.2m.
A portfolio of 144 properties is set to change hands for £500m as part of the buyout, while the operating part of the business is valued at £1b.
Meanwhile, Apollo Global Management's UK hospitality interests includes a portfolio of Holiday Inn properties, including the 906-room Holiday Inn Kensington Forum, and the Casual Dining Group, the operator of the Café Rouge and Bella Italia brands.
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