The landlords of as many as 40 Travelodge hotels are planning to replace them with a serviced apartment operator following a bitter row with the budget hotel chain over rent cuts, according to the Daily Telegraph.
Various unnamed landlords are in discussions with Room2, which wants to launch a low-cost version of its “hometel” concept, which combines serviced apartments with some extra add-ons normally found in hotels, the newspaper said. Room2 is part of the family owned property company Lamington Group.
Travelodge Hotels Ltd. was among the first companies to withhold rent as the coronavirus struck Europe, riling landlords. In June, it agreed a restructuring plan with its creditors, securing a 38% rent cut through December 2021, but allowing landlords to break leases within six months and to seek new operators if they wished. The hotel chain said in a statement at the time that the deal would allow it to “navigate the short-term challenges facing the business as a result of the Covid-19 pandemic.”
Room2 founder Robert Godwin told the Daily Telegraph that his “hometel” model had held up well during the crisis and “we now see a real opportunity to replicate this success in the budget hotel market.”