New platform AGO Hotels has signed at least nine Travelodge hotel leases.
The AGO brand was launched by a coalition of Travelodge landlords in partnership with Accor in July.
Its offer, co-founded by Viv Watts and Lionel Benjamin, included a 25-year FRI lease, an equity stake in the new platform and profit participation calculated on the basis of each hotel’s EBITDA.
A statement from the platform said it was in discussions with “owners of individual hotels and portfolios who stand to benefit from our disruptive business model”.
Travelodge’s controversial CVA earlier this year had included a break clause without penalties before the end of this year.
The hotel company has since said it has retained a network of 578 hotels after its 18 November break clause deadline, accounting for more than 98% of its 2019 UK hotel EBITDA.
The network comprises 563 hotels in the mainland UK, 10 properties in Ireland and Northern Ireland and five hotels in Spain. It also includes nine new hotels opened in the year to date.
Steve Bennett, Travelodge property director, said: “While the Covid-19 situation has created unprecedented challenges for the whole UK hospitality industry, we have worked closely with our landlords to try to find the best possible path forward.
“With the overwhelming support and commitment of so many landlords across the country, we now have a strong, diversified and well invested network that leaves us well positioned for the recovery. The group would like to thank its landlords for their overwhelming support and will continue to work closely with all its stakeholders over the months ahead.”
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