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Travelodge launches 100 million pound hotel acquisition fund

www.travelodge.co.uk

Budget UK hotel chain Travelodge has announced the launch of a £100 million joint venture property fund as it looks to acquire a number of hotels that are struggling in the current economy.

The co-operative venture with Meghraj Properties will look to purchase from eight to 14 hotel properties, which would in turn be leased back to Travelodge.

Travelodge currently operates 380 sites around the UK and is the second-largest budget hotelier in Britain. It has said that many of the acquisition targets will likely be in the mid-market range, which is having the most difficulty financially in the recession.

Targeted properties will be existing operations, with a focus on those located in mature markets where the budget chain does not already have a strong presence – meaning it could achieve its expansion goals in those areas without planning and construction delays.

Paul Harvey, the Travelodge director, said: “Since the summer of last year we have been contacted by a substantial number of owners and administrators who have been looking to sell their hotels to us as going concerns.”

He went on to say: “What stopped negotiations moving forward on many of the sites were the excessive valuations placed on the properties. Over the last two months however it has become clear that expectations on value have moved in our direction, meaning some exciting opportunities are presenting themselves.”

Thanks to www.yorkshirepost.co.uk for the above quotes, for more information on this article please visit their website.

www.travelodge.co.uk

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