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Hotel chain Travelodge explores sale option - The Times

Published 13/04/2015, 01:58
© Reuters. A sign for a Travelodge is seen at Hickstead in Sussex in southern England
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(Reuters) - The owners of UK budget hotel chain Travelodge are preparing to appoint advisers to consider strategic options, including a sale that may value the company at more than 1 billion pounds, the Times reported on Sunday.

Citing people familiar with the matter, the newspaper said that owners Goldman Sachs (N:GS), Avenue Capital and GoldenTree Asset Management are in talks for a possible flotation of the company, although a sale in the next nine to 12 months in seen as the most likely option.

If the owners decide to combine the portfolio of 144 Travelodges bought last year from Nick Leslau's Prestbury Investment Holdings, the value of the hotel chain may shoot up to 1.6 billion pounds, the paper reported.

Avenue, Goldman and GoldenTree took control of Travelodge from Dubai International Capital in 2012, after a restructuring that reduced its debt to 329 million pounds from 635 million.

© Reuters. A sign for a Travelodge is seen at Hickstead in Sussex in southern England

Goldman Sachs, Avenue Capital and GoldenTree Asset Management could not be reached for comment outside regular business hours.

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