Travelodge secures funding for new West London hotel

Travelodge, which operates nearly 600 hotels across the UK, Ireland and Spain, has secured development funding to deliver a new, purpose-built hotel scheme in Chiswick.

The property consultancy, Gerald Eve, was appointed to seek funding for the new development which is located next to Chiswick Roundabout and Chiswick Flyover and situated only 400m from Chiswick Business Park.

The funding partner, RTP Global Real Estate Investments, has purchased the site and committed to fund the development site for £19.4m and simultaneously retained Travelodge Hotels Limited as the development manager for the scheme, which will comprise a 113-bedroom hotel, arranged over ground and five upper floors.

Upon practical completion, anticipated for Q4 2023, the hotel will be single-let to Travelodge Hotels Limited on a new 35-year lease, with five-yearly, index-linked rent reviews. The purchase price reflects a funding yield of 4.75%.

Travelodge currently operates 598 hotels across the UK, Ireland and Spain, and 79 hotels in London.

The group is one of the largest budget hotel chains in the capital, with hotels operating in 31 out of 33 London boroughs.

Tony O’Brien, UK Development director at Travelodge, said “As one of London’s biggest hotel brands, we are delighted to extend our hotel network in the Capital by developing a new budget luxe Travelodge hotel in the heart of Chiswick. This district is growing from strength to strength, but there is a desperate need for good quality and great value accommodation in the area and our hotel will help to attract new business and leisure visitors.

“This is great news for the local economy, as research shows Travelodge customers will spend at least double their room rate with local businesses during their stay, which equates to an annual, multi-million boost into the local economy.”