Travelodge Targets Rebrand Opportunities in Development Growth Strategy and Acquires Number of UK Hotels

Travelodge, the UK’s first budget hotel brand which operates over 600 hotels across the UK, Ireland and Spain, has agreed to acquire 11 hotels across the UK, adding to its existing portfolio of 588 UK-based hotels. This forms part of the Company’s focus on targeting rebrand opportunities as part of its UK and Spanish growth plans.

Nine of the hotels Travelodge intends to acquire are former Hotel Campanile hotels, totalling 951 rooms, five acquired on a freehold basis and four to be acquired long-leasehold. This acquisition builds on Travelodge’s strategy to enhance value by diversifying its freehold/leasehold split. The hotels are located in Birmingham, Bradford, Dartford, Leicester, Liverpool, Manchester, Northampton, Milton Keynes and Swindon.

The other two UK hotels for which Travelodge has recently exchanged contracts are in Bromsgrove and Wakefield. Bromsgrove is a former Ibis hotel, where Travelodge has taken a new, 25-year lease. Featuring 43-rooms, the hotel is currently being refitted by Travelodge and is due to open in May. The newly acquired hotel in Wakefield is a former independent hotel (CitiLodge), with 74-rooms, and is being converted to the Travelodge brand by the owner, with the hotel expected to open in August, at which time Travelodge will enter into a new, 25-year lease. Both hotels will be fully refitted to Travelodge’s design and brand standards before opening.

Travelodge has also recently opened a new hotel in Bromley Town Centre, which was a former Ibis hotel. The Company exchanged contracts in January and has fully refitted the hotel to its brand design. The hotel opened for trading last month.

The acquisition of these hotels marks another positive step in our UK development strategy, as we seek to grow and optimise our estate of hotels and enhance value by diversifying our freehold and leasehold split. There are still many locations throughout the UK and Spain where we can open a new Travelodge hotel, to provide great value and quality accommodation. Acquisitions of properties which can be rebranded to Travelodge are a key part of our development strategy, as we look to continue to grow our footprint. We have a requirement to open over a further 300 hotels across the UK, and are seeking prime opportunities when they become available. Steve Bennett, Chief Property and Development Officer at Travelodge

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Alison McNulty

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