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Travelodge has today (8 January) exchanged contracts to acquire 66 Travelodge-branded hotels on a freehold and long leasehold basis from its largest landlord LXi REIT plc, for a combined sum of £210m.
The portfolio includes hotels in London, in regional city centres such as Birmingham, Bath, Leeds, Liverpool, as well as in roadside locations.
The transaction, which is expected to complete on 28 February, comes after Travelodge reported record-breaking Q3 financial results in November 2023, with double digit revenues growth of 16.7% to £782m and an underlying earnings increase of 22.4% to £201.2m.
Jo Boydell, chief executive of Travelodge, said: “The acquisition of 66 Travelodge hotels from LXi REIT, with support from our owner GoldenTree Asset Management, will mark a positive step for Travelodge as we seek to optimise our hotel portfolio and diversify our freehold/leasehold split to enhance value.
“The new structure will provide us with a platform to explore further freehold acquisitions. We have nearly four decades of expertise in operating budget hotels and we look forward to continuing to invest in our hotel network to drive growth.”
He added: “We are pleased to announce this transaction with LXi, with whom we have enjoyed a strong working relationship over many years. We look forward to continuing to work with LXi, who remain our largest landlord, with the 69 Travelodge hotels they continue to own.”
