Travelodge completes ‘largest’ hotel transaction
Hotel operator Travelodge has purchased the leases of 52 Innkeeper's Lodges from restaurant and pub operator Mitchells & Butlers.
The portfolio includes five in the North West located in Chester, Oldham, Warrington, and two in Liverpool.
The deal boosts Travelodge's estate to 452 hotels and increases its room stock to 30,504 across the UK, Ireland and Spain with the additional 1,994 rooms.
Travelodge said it has signed a 25 year lease on the properties and will embark on a £10m investment programme to convert the hotels to bring them in line with "the Travelodge brand".
Travelodge, which claims the transaction is the largest in the hotel sector since 2008, added that the investment will include building new reception areas, replacing all the beds and decorating the hotels.
Grant Hearn, Travelodge's executive chairman, said: "This innovative deal represents the whole of last year's growth in one move and highlights Travelodge's excellent position coming out of the recession. I believe this deal also signifies a great move for Mitchells & Butlers as they refocus on value and growth from their core pub brands. We are very excited to be part of such a ground breaking deal.
"We have an aggressive growth plan in place and with this acquisition we are on track to more than double the size of Travelodge hotels over the next ten years. We hope to explore further opportunities like this deal with other similar businesses.
"All 52 properties are great additions to the Travelodge brand and each location will draw on both the business and leisure markets. We look forward to working alongside Mitchells & Butlers in driving new customers to our hotels and their restaurants and pubs."
Travelodge said it is anticipated that the hotels will be fully operational within four months and rooms will be available from £19 in line with Travelodge's pricing policy.
The company also said it will seek to retain all 430 staff from Mitchells & Butlers and will look to recruit a further 115 positions, which include 25 hotel manager roles and 90 hotel staff.
The other locations of the 52 Innkeeper's Lodges Travelodge is acquiring includes:
- Arundel
- Basildon
- Beaconsfield
- Bedford
- Two in Birmingham
- Borehamwood
- Bournemouth
- Bromsgrove
- Camberley
- Castle Bromwich
- Chigwell
- Coventry
- Derby
- Dudley
- Two in Glasgow
- Helensburgh
- Keighley
- Leeds
- Nottingham
- Two in Perth
- Walton on Thames
- Two in Cardiff
- Durham
- Eastbourne
- Fleet
- Gatwick
- Leicester
- Milton Keynes
- Two in Newcastle
- Two in Northampton
- Northholt
- Two in Plymouth
- Two in Portsmouth
- Slough
- Snaresbrook
- South Croydon
- Southgate
- Stoke on Trent
- York
