Budget hotel group Travelodge has found new operators or new franchisees for 38 of the 49 hotels it agreed to shed under the terms of its Company Voluntary Arrangement (CVA) and financial reformation.
The company said that 18 of the hotels would move to new operators, including Ibis, Best Western and Metro Inns. Four of those 18 will become new businesses entirely.
The Coventry and Chester Travelodge will be converted into student accommodation, the Stevenage Travelodge is being converted into a conference centre and the Uttoxeter Travelodge will become staff accommodation for JCB. Travelodge said it was attempting to redistribute 15 staff members affected by the change of use of the four hotels.
Meanwhile the hotel group has signed a new franchise agreement for seven hotels with Moto, the motorway service station firm, and 13 other contracts with separate operators.
Travelodge revealed in August last year that it would shed 49 hotels that it no longer considered worthwhile as it entered a CVA. The move was part of a bid to get onto a more balanced financial footing, as the company struggled with £635m of debt.
The company stated in January this year that it was confident that all 49 hotels would have new operators by the original March target date. However 11 hotels will continue to be managed by Travelodge, as it works with the properties’ landlords to continue the search for new operators.
Grant Hearn, Travelodge chief executive said: “It is great news that we have been able to find new operators and introduce franchise contracts for the majority of these hotels. We were always confident that we would secure a future for these properties and the deals that have taken place just demonstrate the huge strength of the Travelodge brand and the success of our operations model.
“Going forward, we are very excited to continue to grow our business, strengthen our product offering and make Travelodge the best value hotel chain in the UK.”
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