Travelodge

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Travelodge UK

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Travelodge UK
Travelodge Hotels Limited
Type Industry Founded Headquarters Private limited company Hospitality 1985 Thame, England, UK

Number of locations 456 hotels in UK[1] [1] 11 hotels in Ireland [2] 3 hotels in Spain Area served United Kingdom Republic of Ireland Spain Keith Hamill (Chairman) Grant Hearn(CEO) Hotels £331.7m (2010) [1]

Key people

Products Revenue Operating income

[1] £153.5m (EBITDAR) [1] £48.5m (EBITDA) (2010) £27.0m (2010) [1] [1] [3]

Profit Total assets Owner(s) Employees Parent Website

£888.4m (net) (2010)

Goldentree Asset Management, Avenue Capital Group and Goldman Sachs 6,000 (full and part-time) (2011) [1] [1]

Endell Group Holdings Ltd (ultimate parent company) [www.travelodge.co.uk www.travelodge.co.uk]

Travelodge Hotels Limited is a private company operating in the hotels and hospitality industry throughout the United Kingdom. Branded simply as Travelodge, it is the second largest in the budget hotel sector (behind Premier Inn) and third biggest hotel chain in the UK by number of bedrooms (31,600 at the end of 2010[1]) Travelodge Hotels Ltd is under separate ownership from the Travelodge chain of the United States.

Travelodge UK

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Company history
Forte
In the 1980s, Lord Forte bought the US Travelodge brand and established it in Britain. He attached them to many of his Little Chefs as Little Lodge before later rebranding them as Travelodges. Travelodge was formerly a division of Forte Hotels, and was known as Forte Travelodge. Since then, it has become a company in its own right and has over four hundred Travelodge hotels, mainly located beside motorways and major roads, although more and more hotels are being opened in city centres. The first hotel was opened in 1985 at Barton-under-Needwood on the A38 near Lichfield, Staffordshire.

A city centre Travelodge in York.

Granada
In 1995, it was bought by Granada, when the Forte Group (formerly Trusthouse Forte) underwent a very unharmonious hostile takeover. In 2001, when Granada de-merged (creating Moto), it became owned by Compass Group. In 2003, it was acquired by Permira under the name of TLLC Group Holdings Ltd (113 Little Chefs, owned by TLLC, were nextdoor to Travelodges), moving its headquarters from Toddington in Bedfordshire to Thame in Oxfordshire in June 2003.[4] In 2004, it bought the Drury Lane Moat House hotel for £11m, and the London Farringdon and London Islington Thistle hotels.[5] In July of that year, it decided to sell 136 of its hotels for £400m, then lease them back.[6]

Dubai International Capital
In August 2006, it was sold to Dubai International Capital (DIC), a United Arab Emirates-based company, for £675 million. In 2007, 80% of bookings were made online.[7] In mid-2010, Travelodge bought 52 Innkeeper's Lodge properties from the Mitchells & Butlers pub chain, leaving less than half the original number of Innkeeper's Lodge hotels. In 2011, Travelodge announced a tie-up with British supermarket Waitrose to develop three joint sites in the UK.[8] Travelodge UK also operate eleven hotels in the Republic of Ireland and three hotels in Spain, with expansion plans announced in 2011 for fifty more hotels in Spain with its development partner Citygrove.[9]

Financial restructuring in 2012
In February 2012, DIC had to prepare a bailout package due to a significant debt of £478 million that was added to Travelodge's balance sheet following its purchase, and despite significant earnings since 2006, these could not cover the debt repayments and the company recorded a debt of £517m in 2011.[10] The company undertook a financial restructure during April 2012 with ownership passing to New York-based hedge funds Goldentree Asset Management and Avenue Capital Group, as well as Goldman Sachs.[11] On 17 August 2012 Travelodge UK confirmed[12] the financial restructuring would be through a company voluntary arrangement which would include; • At least £75m of new...
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