A group of landlords have warned Travelodge that they may reject its CVA if they don’t get clarity over a £40m investment by its owners.
The budget hotel chain has warned that it would “likely enter administration or liquidation” without the CVA, which would be used to cut rents by more than a third.
While the chain’s owners – Goldman Sachs, Avenue Capital and Golden Tree – have committed to inject up to £40m of new equity into the business, some landlords have complained this is subject to “certain conditions” on which they have not been briefed.
The Travelodge Owners Action Group, which represents landlords for 400 hotels, said that the chain “needs to demonstrate” that it would honour these commitments.
