It’s not the first time sale rumours have surfaced, with reports originally detailing Travelodge’s intentions back in April following a full-year profit increase of 63.5 per cent in 2014.
However, the owners of the budget hotel brand, Goldman Sachs, GoldenTree Asset Management and Avenue Capital, are said to have appointed Deutsche Bank as an adviser to manage a £1bn sale of the business or public listing, the Daily Telegraph reports. “Boosted by our strong trading performance and the attractions of the value segment, major developers and financial institutions are showing their confidence in the future of new Travelodge,” said Peter Gowers, Travelodge chief executive. Travelodge almost fell into administration in 2012 but was able to recover with assistance from its owners, which supplied funding to help the company refresh a number of its ageing hotels and reach its 30th anniversary this year. At 92 per cent, the majority of rooms across the country have been modernised as part of a £100m programme to include a refreshed look and new beds, while brand recognition among consumers is at 90 per cent.Read more on acquisitions:
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The overhaul has resulted in the firm’s site attracting one million visits weekly and a booking made every three seconds, with its May-launched mobile app has received more than 85,000 downloads.
These changes have enabled Travelodge to experience a 17.9 per cent year-on-year revenue increase for the six months to 1 July, amounting to £261m. On an revenue per room basis, that’s £35.87 and up by 15.2 per cent and business customers were hailed as the main driver of the growth.
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