Travelodge was thrown a lifeline yesterday as landlords and creditors backed a controversial rescue deal. Creditors – including landlords across the UK – voted in favour of the plan that will see rent payments slashed across more than 100 hotels and 49 hotels offloaded to other operators.
The company voluntary arrangement (CVA) is designed to allow Travelodge to exit poorer performing leases while also free itself of a crippling debt burden.
A number of the hotels are owned by millionaire Nick Leslau's investment vehicle Prestbury, which is understood to have supported the move.
The group, which operates more than 500 hotels across the UK, Ireland and Spain with more than 6,000 staff, secured backing from 97 per cent of Travelodge creditors that voted, including 96 per cent of landlords.
The deal means Travelodge will be able to shake off some of the mammoth debts it has inherited from former private equity owners.
Its three main lenders – Goldman Sachs and two US hedge funds, Avenue Capital and GoldenTree Asset Management – have already seized control of the chain from Dubai International Capital, which paid £675m for Travelodge in 2006.