There’s trouble brewing in the UK for Travelodge that is controlled by private equity, including Goldman Sachs, and which was placed into insolvency to renegotiate its obligations with hotel owners.
The Travelodge Owners Action Group has engaged in talks with Accor and chose the French chain as its preferred brand partner to potentially rebrand 400 hotels under ibis.
You can access Travelodge here.
Here’s an excerpt from the Times:
Hundreds of Travelodge hotels could be rebranded as Ibis hotels as the chain’s landlords seek better terms.
The landlords could switch to a new hotel operator because of a break clause in leases that was negotiated with Travelodge’s hedge fund owners last month as part of a company voluntary arrangement that cut the chain’s rent.
A string of hotel brands, including Accor, Marriott, Intercontinental, Hilton and Jurys Inn, have been circling Travelodge since the coronavirus outbreak in the hope of snapping up its sites. The Travelodge Owners Action Group, which claims to represent more than 400 Travelodges, said that Accor, of France, had been selected as the preferred brand partner.
A quite exciting development that may see a high number of ibis hotels suddenly coming online all around the UK.
Not sure why the deep-pocketed private equity owners of Travelodge UK are not willing to put up more capital rather than try to swindle from the property owners?
Typical dealings from Goldman Sachs that just agreed to pay $3.9B settlement to the government of Malaysia for essentially helping to steal money from the country’s development fund.