Travelodge to keep building despite debt fears

Grant Prior 12 years ago
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Travelodge said talks over restructuring the firm’s debt mountain would not hit its hotel construction programme.

Senior lenders to the company are due to meet today to discuss their strategy as accounts revealed interest payments on debts are costing Travelodge nearly £100m a year.

Speculation is mounting that two US hedge funds could take control of the company which has become a major client for contractors.

Travelodge provides a steady stream of new-build and refurbishment schemes to the industry with plans to open 41 new hotels this year.

Chief executive Guy Parsons said: “You may have read in the press that Travelodge is currently undergoing a debt restructure; this is a standard process that many big companies undertake.

“There is nothing to worry about; it’s business as usual for us.

“Our 499 hotels are trading well and we are on track to open the 41 hotels we announced at the start of this year.

“We opened our sixth hotel in Liverpool just a couple of days ago and we will be celebrating the opening of our 500th hotel next month.”

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