Travelodge

The budget hotel chain is set to survive the Covid-19 pandemic. 

Founded in 1985, Travelodge currently operates 590 hotels in the UK, Spain and Ireland and in a normal year would welcome around 19m customers every year. It employs over 10,000 people.

In a statement the chain's creditors have approved its proposed company voluntary arrangement (CVA) allowing Travelodge to navigate the short-term challenges facing the business as a result of the Covid-19 pandemic. The company points out that this is not a traditional CVA, it is not closing hotels and there are no permanent rent reductions. 

Travelodge notes that with the exception of around 50 all its properties have been closed since 24 March, and the first re-opening 4 July as things stand.  It points out that as a hotel operator Travelodge normally makes 70% of its annual profits between April and September, its peak trading period. Analysts expect hotel revenues to be halved in 2020, which means Travelodge would lose around £350m in revenues this year with a slow recovery expected. 

www.travelodge.co.uk/news/coronavirus.html#hopen

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