Travelodge has announced that 578 of its network of hotels have agreed to continue operating as part of the hotel group following its insolvency earlier this year. The group says this accounts for more than 98 per cent of its 2019 UK hotel earnings.
Steve Bennett, Travelodge property director, said: “While the Covid-19 situation has created unprecedented challenges for the whole UK hospitality industry, we have worked closely with our landlords to try to find the best possible path forward.
“With the overwhelming support and commitment of so many landlords across the country, we now have a strong, diversified and well invested network that leaves us well positioned for the recovery.
“The group would like to thank its landlords for their overwhelming support and will continue to work closely with all its stakeholders over the months ahead.”
Travelodge was only able to keep 62 of its then network of 590 hotels open during the pandemic.
It launched a company voluntary arrangement (CVA) in June in order to restructure its finances.
The CVA proposal involved some hotels receiving full rents and the majority receiving a temporary reduction in the rent payable covering the period between April 2020 and the end of 2021 with all hotels returning to full contractual rents in 2022. The group said landlords would receive an average of 62 per cent of the contracted rents due.
In June, the group forecast that closures due to Covid would lead to approximately £350 million in lost revenues in 2020.