UK’s budget hotel chain Travelodge is set to be put up for sale by its owners that could provide the company with more than £1bn.
As reported by the Times, the hotel’s existing owners, which include Goldman Sachs, Avenue Capital and GoldenTree Asset Management, are holding discussions to appoint advisers to weigh strategic options for the floatation process.
People with knowledge of the matter said a sale is likely to take place in the next nine months to one year.
In addition, the newspaper noted if the owners decide to combine the portfolio of 144 Travelodges that were acquired in 2014 from Prestbury Investment, the value of the hotel chain may rise to £1.6bn.
Following a £635m restructuring, Avenue, Goldman and GoldenTree took control of Travelodge from Dubai International Capital (DIC) in 2012.
Travelodge was acquired by DIC from private equity firm Permira in 2006 in a transaction worth £675m.
In 2012, coupled with a large debt burden, as well as expensive lease arrangements, Travelodge is said to have fallen victim to the economic downturn, Reuters reported.
Travelodge has its current operations in the US, Canada, UK, Spain, Ireland, New Zealand and Australia. However, many of these are operated by independent companies who have no connection with the brand in other countries.
Image: A Travelodge in Calgary, Alberta. Photo: courtesy of User:Thivierr.