Travelodge, which has two of its budget hotels in Croydon, has entered into a Company Voluntary Arrangement (CVA) as part of a financial re-structuring to reduce an overwhelming debt burden taken on during the boom years.
Travelodge is seeking a 45 per cent reduction in rent from their 49 worst performing hotels.
The company has made no secret of its intention to pull out of all the poor performing hotels eventually.
Croydon’s Travelodges – on Wellesley Road and in South Croydon on Brighton Road – have made the cut and both hotels will stay with the company.
James Pieslak, a Travelodge spokesperson, told Inside Croydon that the hotels, one an office conversion on Croydon’s eight-lane urban motorway and the other at Purley Oaks, are successful “being close to London and Gatwick and price competitive”, with basic rooms on offer for less than £26 per person per night.
That plain explanation may be good guidance to local politicians as to how to promote the borough’s recovery.
Pieslak said that as part of the re-structuring of the company, its bankers Goldman Sachs and private equity companies will be taking over.
“£55 million will be invested into a major refurbishment programme across the estate covering over 11,000 rooms and 175 hotels.
“The refurbishment programme will commence in early 2013 and continue through to summer 2014. The two Croydon hotels may benefit from this new cash.”
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- Travelodge strikes rescue deal with landlords and sheds 49 hotels (guardian.co.uk)
- United we stand: looking for a more representative Croydon (insidecroydon.com)