AGO Hotels hits 1,000 rooms as group expands beyond ex-Travelodge hotels

AGO Hotels has signed three further hotels, taking it up to 14 locations and 1,000 rooms across the UK.

The new properties include the former Grange Bracknell hotel in Berkshire, a four-star hotel with 80 bedrooms and 40 aparthotel rooms; the 60-bedroom Orchard Hotel Gloucester; and the former Travelodge Thurrock M25, which has 47 bedrooms.

The rebranding details of the properties have not yet been confirmed.

Since launching in December 2020, the company has expanded to a team of almost 200 staff. AGO Hotels was launched by disgruntled Travelodge landlords, in partnership with Accor, and has seen nine properties rebrand under Accor's Ibis Budget brand, with AGO funding the rebrand costs and Accor as the operator. The group has since expanded beyond ex-Travelodge hotels.

The AGO Hotels platform offers a 25-year FRI lease, an equity stake and profit participation calculated on the basis of each hotel's earnings before interest, tax, depreciation and amortisation (EBITDA).

Co-founder Viv Watts said: "Reaching 1,000 rooms in our portfolio is an early growth milestone for our business, with much bigger goals in mind. When we launched AGO in 2020, we were confident our hybrid lease model would be attractive to real estate investors as well as hoteliers and it is wonderful to see the vision bearing fruit.

"We have proven our ability to deliver rents in weak markets, not least throughout the 2021 Covid-19 lockdown, and look forward to paying profit rents to our landlords in the months ahead. We are actively engaging in development opportunities, including new builds, conversions, and leasing existing franchise assets, as investors realise the multiple benefits of our hybrid lease structure."

Co-founder Lionel Benjamin added: "The AGO team are delighted to add these three hotels to our portfolio, strategically located across key regional hubs. These additions to the portfolio demonstrate a continued and growing confidence within the hotel sector, and stronger returns in occupancy as we emerge from national lockdowns and the lifting of travel restrictions.

"AGO is in a significant phase of growth as we welcome guests into our new hotels and continue to look for new opportunities across the UK. The signing of these additional hotel is testament to a model which has paid rents through Covid and will deliver profit rent for Q3."

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