Budget hotel chain Travelodge made a pre-tax loss of £56.8 million on revenues of £432.6 million last year.
Accounts filed at Companies House show that the chain had total debts of £484.5 million at the end of December 2013 compared to more than £1 billion prior to a debt-for-equity swap, the Telegraph reported.
A direct comparison with the previous year is difficult as Travelodge’s parent company, Thame and London Limited, was only incorporated in the second half of 2012 when it was saved from collapse involving a company voluntary arrangement to reduce its rent bill at about a fifth of its hotels and to offload some sites.
Goldman Sachs, plus the US hedge funds GoldenTree Asset Management and Avenue Capital Group, gained control of Travelodge from Dubai International Capital through the debt-for-equity swap.
Following the change in ownership, the group, which has 500 hotels and 38,000 rooms across the UK, has undergone a £57 million refurbishment programme to breathe new life into the brand.
A spokesman pointed out that at an operating level, excluding exceptional costs and interest charges on debt, the company made a profit of £5.6 million, a turnaround from a £4.9 million operating loss previously.
“We are pleased to have returned to an operating profit and are strongly outperforming the market this year,” the spokesman said. “We also continue to make good progress on the restructuring.”
Meanwhile, 21-strong country House chain Hand Picked Hotels is reported to have seen pre-tax losses increase to £9.1 million in the year to November 28, 2013, up from £6.9 million in the previous 12 months.
Turnover fell from £59.9 million to £58.1 million, the Mail on Sunday reported.
The company hosted 1,400 weddings, a slight fall on the previous year.
Director Julia Hands told the newspaper: “We are confident that the combination of excellent service, fine food and historic country houses that we offer will continue to be attractive to our guests.”
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