Travelodge has really been going places since it nearly went under a few years ago, and it might soon be bought, according to the BBC.
Travelodge was in trouble a few years ago, and was on its last legs before being bailed out by Goldman Sachs, Avenue Capital and Golden Tree Asset Management. Recently, profits have risen 63%, and revenue per room has grown 16.8%. With a new lease on life, it is likely that Travelodge will sell itself for one billion pounds or $1.4 billion.
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Management gave the value-conscious British consumer the credit for its recent success. In the supermarket sector, established stores are losing out to lower priced competitors. Travelodge is seen as the value proposition in the hotel sector. CEO Peter Gowers told the BBC, “There’s probably never been a better time to run a value hotel business than now, because the value hotel sector is huge. Britain is becoming a nation of value shoppers.”
Meanwhile, the chain has undertaken a 100 million pound or $140 million effort to refurbish its older hotels. The company runs 500 hotels in the United Kingdom and has 250 other potential locations.
