Travelodge writes to councils for funding support

Travelodge writes to councils for funding support

Looking to build on previous successes

Looking to build on previous successes

Travelodge is looking to build across England and Wales
Travelodge is looking to build across England and Wales

Travelodge is turning to councils across the country to help it build new hotels.

The budget hotel brand has written to 124 councils in the UK in an attempt to get funding for future hotel projects, after previously working with authorities in Aylesbury and Eastleigh with new-builds.

The letters encourage local councils to borrow government money from the Public Works Loan to build a hotel that will create jobs and give money back to the council through charging rent to the Travelodge.

The scheme has already seen successes in the aforementioned towns with another five councils thought to be interested in using assets in a similar way.

“We are the first UK budget hotel brand to work with local councils on co-partnership developments.  The deals we have done so far have provided a great investment opportunity for both parties and as a result of this innovative calibration, we have today written to 124 other local authorities across England & Wales to see if we can work with them on a similar scheme,” said Paul Harvey, Travelodge’s managing director for property.

Travelodge has been battling with its own debts in the last few years, although managed to halve its pre-tax loss in 2012 under new owners. Companies House figures reported by City AM found the chain had reduced loss from GBP148.1 million in 2011 to GBP71.1m in 2012, while its debts are thought to have reduced GBP1bn to GBP431.7m.

Gary Marshall
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Gary Marshall
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