£55m refurb work at Travelodge
Published: 20 August, 2012
THAME: Travelodge plans to spend £55m on a hotel refurbishment programme after agreeing a financial restructuring of the debt-laden firm.
The company has struck a Company Voluntary Arrangement which will see some of the firm's estimated £1bn debt pile written-off by the banks and landlords take a cut in their current rents.
At least £75m of new money will be injected into Travelodge with £55m earmarked for a major refurbishment programme of 175 hotels.
The refurbishment programme will start in early 2013.
Travelodge said the restructuring would not affect current suppliers and contractors who will Òcontinue to be paid as normal.Ó
Travelodge chief executiveGrant Hearn said: "The financial restructuring, including the CVA, will leave Travelodge in a much stronger position going forward and will ensure a long-term, sustainable future for the business."