Travelodge owners raise for sale sign after strong performance
Travelodge has appointed Deutsche Bank to explore a sale of the business after it revealed a jump in half year revenues.
The hotel company, co-owned by Goldman Sachs, GoldenTree Asset Management and Avenue Capital, was saved from the point of collapse in 2012 by the trio, who are now looking to exit their stake.
A flotation of the company or an outright sale are two options on the table.
Travelodge, led by chief executive Peter Gowers, said total revenue rose by nearly 18 per cent for the six months ending June to reach £261m. Revenue per available room, a common measure of performance which shows the value generated by each hotel room, also rose 15.2 per cent to £35.87 a room.
“Our shareholders are not natural long term holders of a hotel business and they are working with Deutsche Bank to explore their options for the future,” Gowers said.