Property tycoon Nick Leslau’s Secure Income has revealed it has begun to take action against Travelodge owner Goldman Sachs after it “failed to provide any proposals for dealing with outstanding rent payments”.
Secure Income said the outstanding quarter’s rent due from Travelodge amounts to 6.4% of the company’s annual rental income.
The company said in a statement: “While we are extremely aware of and sensitive to the challenges facing so many businesses today in this unprecedented pandemic, Travelodge has over 580 hotels with more than 44,500 rooms and recently reported record earnings of £129.1mwith net debt of c. £311m.
“It is owned by large, multinational investment businesses in Goldman Sachs, Avenue Capital and GoldenTree. We are disappointed and surprised that they have not yet presented a proposal.”
It continued: “In light of this, Secure Income REIT plc has already reluctantly initiated actions to recover this debt, but remains hopeful that this matter can still be settled prior to those options being fully pursued.”
The news comes after Travelodge reportedly called in restructuring experts in a bid to secure a rent holiday from landlords amid the ongoing pandemic.
According to The Times, the budget hotel chain has drafted in Deloitte and investment bank Moelis in order to help them secure the deal with landlords in an effort to shore up cash.