The US hedge fund GoldenTree is preparing to sell the Travelodge hotel chain for around £1.2bn, capitalising on a post-pandemic boost in domestic travel, according to the Sunday Times.
GoldenTree, which manages around US$50bn in assets, took control of the budget hotel chain in 2012 and has since seen strong trading results.
Travelodge, the UK's second-largest hotel chain, along with its competitor Premier Inn, is experiencing an increase in 'blue collar' business travel customers opting for more affordable accommodation.
Travelodge reported underlying sales of £909.9mln last year, a 25% jump from pre-pandemic figures, with underlying profits at £212.9mln.
GoldenTree is likely to favour selling Travelodge outright over a public listing, with Goldman Sachs (NYSE:GS) being a potential candidate for managing the sale, the Sunday Times said.
Since the first Travelodge opened in Burton upon Trent in 1985, the chain has changed hands numerous times. The present move comes amidst a challenging time for the hospitality industry, which continues to grapple with labour shortages.