The bitter rent row between Travelodge and some of its landlords will sharpen today as the hotelier launches its CVA.
The company, which is owned by Goldman Sachs, Avenue Capital and GoldenTree Asset Management, will file the documents for the CVA today.
Under the company voluntary process, Travelodge proposes to pay £230m in rent for this year and next, roughly half of its annual bill.
Unusually, Travelodge’s proposed CVA will not involve the closure of any of its 564 properties. It did not pay any of its quarterly rent bill in March and told landlords it is suspending payments.
Under proposals drawn up by Deloitte, the owners will pay £60m of a new £100m debt injection, plus up to £40m of additional equity. Travelodge will use up its £100m of reserves.
Landlords will be offered £230m for the period until the end of 2021, at which point full rents become payable. The rent that was due in March will remain unpaid, and Travelodge is also asking for a rent cut.
The plans are already being opposed by a number of Travelodge’s landlords, including Nick Leslau’s Secure Income Reit, which owns 123 of its hotels.
