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Travelodge is reportedly planning a £1bn sale or stock market float of the company in the wake of strong financial results.
The owners, investment bank Goldman Sachs, and hedge funds GoldenTree Asset Management and Avenue Capital, have appointed Deutsche Bank to advise them.
The reported sale comes as the chain published financial results showing a 17.9% surge in total revenue to £261m in the first half of 2015 (ending July 1), up from £221.3m in the same period in 2014.
The group announced that revenue per available room (RevPAR) increased by 15.2% in the first half of the year to £35.87, up from £31.14 in 2014, while average room rate was up 11.4% to £48.19, up from £43.27.
Meanwhile, occupancy, which was at 72% in the first half of 2014, was up by 2.4% to 74.4%.
Peter Gowers, chief executive at the chain, said customers are “responding well” to upgraded quality levels driven by the group’s recent £100m modernisation programme, adding that businesses are choosing Travelodge in larger numbers and families have welcomed the introduction of separate beds for children.
Speaking of a potential sale, he said: “Our shareholders are not natural long term holders of a hotel business and they are working with Deutsche Bank to explore their options for the future.
“While that takes place we continue to focus on driving the business forward and building on the great momentum seen in our performance so far this year.”
The chain opened five hotels in the first half of 2015 and it expects to open a further 45 over the next 24 months.
