Travelodge announces a £128million sale and leaseback transaction
1st May 2007
Travelodge today announced that it has raised £128 million via a sale and leaseback transaction.
Travelodge has sold 17 of its properties in the UK, to Prestbury property group and will lease the properties back from the new owners on standard RPI market leases of between 25 and 35 years. Aggregate rent cover is in-line with Travelodge's existing estate.
The UK's fastest growing budget hotel company will use £100 million of the proceeds to repay debt and will invest the balance in growing the business.
Jon Mortimore, Travelodge Finance Director commented: "This leaseback releases extra funds to really drive the growth of our business. There are significant opportunities to step up expansion in the UK both through accommodation and new revenues through our online business. This transaction provides us with the flexibility to bring forward and accelerate our growth plans".
Nick Leslau, Prestbury's Chairman and CEO, said "We are delighted to have added to our existing portfolio of Travelodge Hotels and are very pleased to have concluded another deal with the team at Travelodge".
Notes to editors:
Greg Dawson: 01844 358644
Emily Blyth: 020 7251 3801