Creditors agree deal so hotel chain can restructure
8:53am Wednesday 5th September 2012 in News
THE creditors of Travelodge, which opened a hotel in Bolton last year, have voted to support a deal to tackle the cost of the firm’s property leases and allow the refurbishment of 175 hotels.
Creditors — such as suppliers and landlords — have voted through a proposed company voluntary arrangement (CVA), which will enable Travelodge to restructure its property empire.
Travelodge opened a new £3 million 80-room hotel in Bolton’s River Street, near St Peter’s Way, last year.
But last month it announced plans to sell 49 hotels which were “no longer viable” and hoped to find new owners. As part of the restructure, Travelodge said it would agree rent reductions for 109 hotels.
Following yesterday’s announcement, Richard Fleming, a supervisor of the arrangement from accountants KPMG, said: “The vote lets Travelodge tackle the underlying problem of its unsustainable lease burden, which was weighing down the business.”
Travelodge was the first budget hotel brand to launch in the UK in 1985 and more than 13 million people stayed in its hotels last year.
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