Travelodge up for sale for £1.2b

Travelodge is to be put up for sale by its hedge fund owner for £1.2b as it seeks to profit from strong demand in domestic travel.

Goldentree, which took over Travelodge in 2012, is in talks with investment banks regarding the sale of the group which operates 45,781 rooms across 595 hotels, according to The Times.

The proposed sale follows strong trading last year as the business recovered from the pandemic and a breakdown in relations with some landlords following a 2020 Company Voluntary Arrangement (CVA).

For the year to 31 December 2022 the business reported an increase in total underlying revenue of £909.9m, an increase of 25% on 2019 levels. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were £212.9m, up £83.8m on 2019.

Earlier this year it announced it was looking to partner with local councils to open 300 new hotels across the UK as part of a £3b expansion.

The business is currently run by Jo Bydell, who stepped up from chief financial officer to replace Craig Bonnar in May 2022. She has been continuing to rebuild relationships with landlords after the chain underwent a CVA in 2020 which proposed to pay landlords some 62% of rate due.