Group of Travelodge owners in ‘advanced talks' with other hotel brands
The Travelodge Owners Action Group has confirmed that it is in "advanced discussions" with major hotel operators including Accor, Marriott International, InterContinental Hotels Group (IHG), Hilton, Jury's Inn and Magnuson Hotels, among others.
Travelodge's creditors approved its proposed Company Voluntary Arrangement (CVA) last month, which included a landlord break option.
The action group, representing the landlords of more than 400 Travelodge hotels, said Travelodge had "refused to engage" with its proposals for rent write-offs and the CVA will have a "profound impact" on many individuals, charities, pension funds and local authorities. However, the landlord break option has enabled the group to explore its options with alternative operators.
Viv Watts, managing partner of Oasis Holding, who co-ordinates the group, said: "A majority of creditors took the difficult decision to support Travelodge's CVA, an insolvency deal which will have a profound impact on many savers and investors across the UK, including employees, individuals, charities, pension funds and local authorities.
"Our mission as an action group has always been to protect the interests of domestic savers and investors, who have been forced to contend with the aggressive tactics of offshore hedge funds willing to expend unparalleled resources to protect their profits, even at the expense of their own stakeholders. We are carrying on the fight against this unjust abuse of insolvency law that has been fuelled by weak government intervention and will do everything possible to mitigate the damage caused by this CVA.
"Following the inclusion of a landlord break option for over 500 Travelodge hotels within the terms of the CVA, we are in talks with a number of leading global hotel brands aimed at providing savers and investors with the long-term stability they require. Advanced discussions are ongoing with major operators such as Accor, Marriott, IHG, Hilton, Jury's Inn, Magnuson Hotels and others. The purpose of this is to present a range of alternative options to Travelodge landlords, so that they can decide which structure would work best for them.
"Travelodge's conduct over the years has demonstrated a willingness to exploit landlords and ignore contractual lease obligations. This makes it necessary for landlords to seek a more equitable structure. The Travelodge Owners Action Group will continue to fight for a fair and just outcome for the savers and investors that underpin Travelodge but have been forced to subsidise the business".
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