Travelodge, Britain's second-biggest budget hotel operator, will announce plans today to launch a £100 million fund aimed at the growing number of distressed hotels that are coming up for grabs.
The move comes a day after the head of Whitbread, which owns the Premier Inn chain, warned of significant industry restructuring.
Whitbread and Travelodge are among the few hotel groups that continue to seek acquisitions as weaker rivals retrench - but while the Premier Inn owner will try to use its existing balance sheet strength to fund deals, Travelodge has teamed up with Meghraj, an Anglo-Indian property fund manager, to pursue opportunities.
The new Tamesis Capital will seek to raise £40 million of equity and £60 million of debt with a view to acquiring up to 14 hotels that would then be converted and leased by Travelodge.
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Source - Times Online
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