The owner of Travelodge is priming the chain for a sale that could fetch in excess of £1bn.
American hedge fund GoldenTree, which took over Travelodge in 2012, has been meeting with investment banks vying for the mandate to sell the chain of 595 hotels.
City sources said the firm was seeking £1.2bn for Travelodge.
Travelodge reported underlying sales of £909.9m last year, a 25% increase on pre-pandemic levels. Underlying profits came in at £212.9m.
All of its hotels are leased, which is likely to shorten the list of potential suitors.
