Offers fall short in £1 billion Travelodge hotel auction

Thu, 03 Mar 2016 | BUSINESS SALE

The estimated £1 billion auction of budget Travelodge hotels has been put on hold by the firm’s chief executive, reports The Times.

Peter Gowers, the Travelodge CEO, said: “We conducted a strategic review before Christmas [2015], but with trading going as it is our owners are now perfectly comfortable holding on.”

Mr Gowers added that there were “still people talking”, but that nothing was likely to happen with the sale in 2016 as there was “no formal sale process” taking place.

The hotel chain is owned by Goldman Sachs, Avenue Capital and GoldenTree Asset Management after the investment firms brought the distressed business out of a debt crisis three years ago. They subsequently put 519 of the group’s budget hotels up for sale through Deutsche Bank in late 2015.

The previous frontrunners to buy the hotels, Starwood Capital and Apollo Global Management, have both submitted unsuccessful final offers — rejected because they fell short of expectations. Both firms had expressed interest in buying a smaller £600 million property portfolio made up of 144 Travelodge assets, but this also seems to have fallen through.

Travelodge has posted some very positive figures in the last year, with a record 18 million customers and forecasted earnings of £100 million for the first time. This figure is up from £40.5 million in 2013 and £66 million in 2014. Turnover increased by 13 per cent, too, up to £558 million.

View the latest UK businesses for sale.


Share this article



Latest Businesses for Sale

Natural Stone Supply Company: Sourcing/Processing/Distribution
Aberdeenshire, Scotland, UK

This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. Offers invited.

Asking Price: £1,050,000
Turnover: £1,100,000

RELOCATABLE


Precision Engineering Business
North West, UK

Precision Engineering Business for sale operating with a modern, well equipped machine shop, offering Engineering Development Modelling (EDM), CNC turning & milling, grinding, boring and fitting. Offers invited.

Asking Price: Offers Invited
Turnover: £400,000

LEASEHOLD


Accountancy Business
UK Wide

High quality practice with strong middle management on the market for the first time. Established: 25 to 30 years. Strong middle-tier management to support acquirer throughout the transition period and on an ongoing basis. Locations: Cheshire, Mersey...

Asking Price: £1,300,000
Turnover: £1,300,000


View more businesses for sale

News Search

Latest News

 
20
 
Sep
 

Thomas Cook seeking 'last-ditch' fire sale | BUSINESS SALE

Thomas Cook Group is reportedly trying to piece together a l...

 
19
 
Sep
 

Smith & Williamson and Tilney to merge | MERGER

After revealing in August this year that talks were in place...

 
18
 
Sep
 

Infrastructure investment manager takes stake in LJLA | BUSINESS SALE

Infrastructure investment management group, Ancala Partners,...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
25
 
Jun
 

Jurys Inn owners review portfolio | BUSINESS SALE

The Business Sale Report understands that Rothschild has bee...

 
05
 
Sep
 

Travelodge to sell six hotels | BUSINESS SALE

Travelodge is putting six West Midlands hotels on the market...

 
13
 
Aug
 

Travelodge looks at options including CVA | ADMINISTRATION

The owners of Travelodge are considering placing the hotels ...

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