Travelodge claims strong support for CVA

Travelodge has claimed overwhelming support from landlords for its company voluntary arrangement (CVA).

The budget chain has retained a network of 578 hotels, accounting for more than 98% of its 2019 UK hotel earnings.

The network constitutes 563 hotels in the mainland UK, ten properties in Ireland and Northern Ireland and five hotels in Spain. 

It also includes nine new properties opened so far this year. 

The company kept just 48 properties open through the first nationwide Covid lockdown for NHS staff and key workers.

The CVA approval gained from creditors in June ended a prolonged and increasingly bitter battle between Travelodge and landlords of its hotel sites who opposed the company’s proposals to withhold rents through the rest of this year and into 2021.

A CVA is a legally binding agreement with creditors to allow a proportion of debt to be repaid over time.

Travelodge property director Steve Bennett said: “While the Covid-19 situation has created unprecedented challenges for the whole UK hospitality industry, we have worked closely with our landlords to try to find the best possible path forward. 

“With the overwhelming support and commitment of so many landlords across the country, we now have a strong, diversified and well invested network that leaves us well positioned for the recovery.

“The group would like to thank its landlords for their overwhelming support and will continue to work closely with all its stakeholders over the months ahead.”

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