Budget hotel operator Travelodge has clinched a £400m sale-and-leaseback deal it has been seeking since July that will help fund its expansion plans.
It has sold 135 of its portfolio of more than 240 hotels to Prestbury Hotels, a newly-created company owned by property entrepreneur Nick Leslau, venture capitalist West Coast Capital and Bank of Scotland Joint Ventures.
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Prestbury Hotels will lease the freehold hotels in city centres, airports and roadside locations back to Travelodge for periods ranging from 25 to 35 years.
“The objective of the Travelodge business is to serve our customers and build value through managing and running hotels, not being property owners," said Travelodge chief executive Grant Hearn.
“This transaction will allow us to accelerate the roll-out of our low-cost model and to further focus on delivering quality and value for our customers alongside excellent financial performance.”
Travelodge intends to open a new hotel every 10 days throughout 2005.
A key goal is boost its London bedroom tally from 2,000 to 3,000 and to double its properties within the M25 to 22 hotels.
by Angela Frewin
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