Travelodge looks at options including CVA

Mon, 13 Aug 2012 | ADMINISTRATION

The owners of Travelodge are considering placing the hotels in a CVA arrangement in order to address its £500 million debt pile.

Travelodge is the second largest budget hotel operator in the UK behind Whitbread’s Premier Inn. Although Travelodge saw its profits rise by 20 per cent to £55 million last year it can no longer bear the weight of its substantial debts and increasing interest.

In a CVA the group would be able to brush off about 50 leases from its 513-strong hotel portfolio, after its landlords had refused to agree to new terms.

Goldman Sachs and New York hedge funds Avenue Capital and GoldenTree Asset Management are taking over ownership of Travelodge from Dubai International Capital, which acquired the hotel group in 2006 from private equity firm Permira for £675 million.

The trio are understood to have drafted in KPMG to advise on a restructuring of the company with a focus on how to handle its debts. KPMG recently helped Fitness First to drop about 70 of its UK-based gyms in a debt restructuring process.

An unnamed person told The Times, “If there is a CVA, the hotels involved will probably be transferred to new operators over a period of six to twelve months.”

Share this article

Latest Businesses for Sale

IT Outsourcing Company
UK Wide

Services cover IT support, communications, cloud services and security. All clients benefit from a dedicated Accounts Manager. Works with circa 120 active clients, all of whom provide reliable, repeat business. Offers invited.

Asking Price: Offers Invited
Turnover: £1,000,000


MOT & Car Services Garage
Tredegar, Blaenau, Gwent, Wales, UK

The business itself has been run by the current family owners for more than 40 years and is very well known in the area, with long standing repeat and referral private and fleet customers. They have been in the trade for many years and are now lookin...

Asking Price: £699,995
Turnover: £1,380,584


Halal Wholesale & Retail Butcher
West Ealing, City of London, London, UK

The business operates 7 days a week opening 7am to 8pm and Sunday 8am to 8pm. Deliveries commence independently by the drivers who start at 6am. The business is managed and operated by our clients with the help of 8 full time staff and 2 part time st...

Asking Price: £649,950
Turnover: £2,400,000


View more businesses for sale

News Search

Latest News


Successful MBO at Homefair Blinds | MBO/MBI

Homefair Blinds has been acquired in an MBO led by a trio of...


SKS completes four acquisitions | BUSINESS SALE

SKS Business Services has announced the acquisition of four ...


Mothercare to appoint administrators | ADMINISTRATION

Baby products retailer Mothercare has announced that it will...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide


Related News


Weetabix to be sold for £1.4bn | BUSINESS SALE

Weetabix, the largest producer of breakfast cereals in the U...


Offers fall short in £1 billion Travelodge hotel auction | BUSINESS SALE

The estimated £1 billion auction of budget Travelodge ...


Moonpig owner in business sale rumours | BUSINESS SALE

A number of private equity firms are thought to be circling ...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources