Nick Leslau’s Secure Income REIT has rejected a proposal from Travelodge amid a bitter row over unpaid rent during the pandemic.
The REIT said it had received a proposal from the hotel chain that “was not in keeping with either the nature or the spirit of the proposals made by any of our other tenants”.
Instead it has agreed to offer support and is in advanced discussions to defer its own payments.
It follows announcements earlier this week that Secure Income would take action to recover outstanding rents from Travelodge, which is backed by investment from Goldman Sachs, Avenue Capital and GoldenTree.
Travelodge is the landlord’s only occupier with outstanding payments, representing 6.4% of the REIT’s annual income.
Despite the loss of income, the REIT has committed to the quarterly dividend and will pay shareholder 4.2p per share on 29 May. Future dividends are under review and expected to be announced on 23 July.
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