Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
Travelodge has 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.
Amid the nationwide lockdown, the group has only continued to operate 48 of its 570 hotels, keeping these sites open for key workers and vulnerable people.
The Times revealed that the hotel giant failed to pay its quarterly rent bills last month, however, instead telling landlords that its “comprehensive plan to stabilise the business” included asking for a rent holiday.
The failure to pay its bills has allegedly resulted in tenants being threatened with legal action and winding-up petitions from landlords, however.
According to the last available results at Companies House, the company paid landlords £196.2m in 2018, whilst it lost £5.1m on a turnover of £693.3m in the same year.
The group, which is owned in part by American investment bank Goldman Sachs, last year completed a refinancing of the company, extending its credit facilities to 2025.
It has furloughed the majority of its 12,000 employees in light of the ongoing crisis.
