Travelodge has announced it has retained its network of 578 hotels, accounting for more than 98% of its 2019 UK hotel EBITDA.
According to the group, the move follows “overwhelming support” of its landlords for its company voluntary arrangement.
Earlier this year, Travelodge landlords voted in favour of a restructuring plan that ensured around 10,000 jobs were saved.
The CVA saw Travelodge receive a 38% total rent reduction with the group paying landlords a total of £230m between April 2020 and the end of 2021.
Earlier reports suggested that landlords might reject the CVA proposal following continued uncertainty around a proposed £40m investment by its owners.
However, Travelodge reportedly came back with a set of concessions in order to “sweeten” the deal.
The hotel group’s network constitutes 563 hotels in the mainland UK, ten properties in Ireland and Northern Ireland and five hotels in Spain. It also includes nine new hotels opened in the year to date.
Steve Bennett, Travelodge property director, said: “While the Covid-19 situation has created unprecedented challenges for the whole UK hospitality industry, we have worked closely with our landlords to try to find the best possible path forward.
“With the overwhelming support and commitment of so many landlords across the country, we now have a strong, diversified and well invested network that leaves us well positioned for the recovery. The Group would like to thank its landlords for their overwhelming support and will continue to work closely with all its stakeholders over the months ahead.”
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