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Accommodation

Travelodge expands in UK

By BBT / 21 April 2008
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Travelodge has finalised a deal to buy six hotels from the Menzies Group in conjunction with R20 Ltd for £85m ($170m)


The six leasehold hotels are in Edinburgh, Bath, Newcastle, Coventry, Oldham and Stevenage, and add a total of 719 rooms to the Travelodge portfolio representing 18% if its 2008 expansion target. 


”With these new hotels, in some of the UK's key tourist spots, we are well on our way to reaching our target of 4,000 new rooms by the end of the year,” said Travelodge property director Paul Harvey. ”We see acquisition and conversion opportunities as vital to the strength and flexibility of our growth model.”


The budget chain has increased the room count from 650 to 719 across the properties following removal of gyms, restaurants and meeting rooms.


This deal comes after the company added nine new UK hotels last week, adding 568 rooms and creating 170 new jobs in an investment of £28.3m.


”Our growth programme and a rise in both leisure and business demand is driving real momentum for the Travelodge brand. The addition of 15 sites in the last two weeks demonstrates the strength of our pipeline and property team.”


Completion of the acquisitions is expected to take six weeks.


www.travelodge.co.uk

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