THE WELL-HEELED ARE BEING invited to help Travelodge buy up to 14 failing or unwanted hotels.
The budget hotel company is working with financial services group Meghraj, whose high net worth customers are being asked to create a £100 million acquisition fund, known as Tamesis Capital. Meghraj's clients have already put £20 million into the kitty, and are being asked to double that figure.
Tamesis will borrow a further £60 million, while Travelodge will invest just £500,000.
The money will then be used to buy up to 14 going hotel concerns that have hit financial difficulties, or whose owners simply want to get out of the business. Tamesis-owned properties will then be leased to Travelodge.
Travelodge's managing director of development, Paul Harvey, said: "Since the summer of last year we have been contacted by a substantial number of owners and administrators who have been looking to sell their hotels to us as going concerns.
"What stopped negotiations moving forward on many of the sites were the excessive valuations placed on the properties.
"Over the last two months, however, it has become clear that expectations on value have moved in our direction, meaning some exciting opportunities are presenting themselves."