UK's Travelodge Had a Tough 2013, Has Better Plans for 2013
Budget hotel chain Travelodge is preparing to usher out the old and bring in the new in 2014 with a £10m brand relaunch.
The hotelier, which started 2013 with pre-tax losses of more than £71.1m following an “annus horribilis” in 2012, will unveil a fresh image in the spring – the latest part of its recovery plan under new owners GoldenTree Asset Management, Avenue Capital and Goldman Sachs.
The relaunch will be accompanied by a £10m TV advertising campaign, the hotelier’s first since it staved off administration by reducing rents and offloading sites through a company voluntary arrangement (CVA) with landlords in the autumn of 2012.
The CVA accompanied a rescue deal which saw the new owners seize control from Dubai International Capital (DIC) after Travelodge struggled to keep up with interest payments on its debt.
In an interview with The Sunday Telegraph, Brian Wallace, who this month celebrates his first anniversary as chairman of Travelodge, said the chain has come “back to life in a big way” since its painful restructuring, which was agreed in August 2012.
Over the past 12 months, the group has refurbished more than 16,000 of its 35,000 rooms in the UK as part of a £95m investment put up
