UK-based LXi REIT has revealed the sale of its collection of 66 Travelodge hotels.

The company has confirmed that it received an offer that is currently under review by solicitors. It carries a combined sale value of £210m ($262.49m).

The offer is in line with the hotels’ current book value.

LXi REIT plans to use the bulk of the proceeds for debt repayment if a sale is finalised.

This is expected to decrease the group’s loan-to-value ratio to 34% from 38% as of 30 September 2023, as well as Travelodge’s share of the total rent income from 18% to 11%.

The sale is subject to contract and due diligence, with no guarantee regarding its completion.

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By GlobalData

This deal comes after Travelodge announced the opening of Travelodge Madrid Coslada Aeropuerto in Spain last month.

In June 2023, the company signed a franchise agreement with Tifco to open a hotel in Dublin.

In 1985, Travelodge opened its first hotel at Barton-under-Needwood, introducing a budget hotel brand in the UK.

The company currently manages 600 hotels spanning the UK, Spain and Ireland, hosting more than 21 million guests a year.

The Travelodge rooms feature a range of amenities, such as an en-suite bathroom with shower, desk area, separate pull-out beds, and reading lights.

Meanwhile, LXI REIT focuses on investing in commercial properties in the UK.

It leases or pre-leases these properties to a range of tenants in different sectors for long periods, with agreements linked to inflation.