Travelodge secures £19m funding for new west London hotel

Travelodge has secured £19.4m in development funding for a new 113-bedroom hotel in London's Chiswick.

RTP Global Real Estate Investments has purchased the site and provided funding to the scheme.

The six-storey hotel will be situated near Chiswick Business Park and designed as a Travelodge budget luxe premium property, following the popularity of the group's budget chic hotel format, Travelodge Plus, which launched in 2018.

The project is expected to be completed for Q4 of 2023, at which point the hotel will be single-let to Travelodge Hotels limited on a 35-year lease.

Tony O'Brien, UK development director at Travelodge, said: "[Chiswick] is growing from strength to strength, but there is a desperate need for good quality and great value accommodation in the area and our hotel will help to attract new business and leisure visitors."

Will Kirkpatrick, head of hotels at property consultancy Gerald Eve, which secured the funding, said: "The budget hotel sector has been one of the most resilient markets in the UK since the outbreak of COVID-19 as a result of the lower price point and primarily domestic customer base.

"This is epitomized in Travelodge's most recent trading results (Q2 2022) with Revenue, RevPAR and EBITDA all materially ahead of the same period in 2019."

Gerald Eve, Farino Cole Real Estate and Freeths LLP represented Travelodge on the transaction.

RTP was advised by Knight Frank and Dentons.

Travelodge currently operates 598 hotels across the UK, Ireland and Spain, and 79 hotels in London.