Travelodge (British company)

Last updated

Travelodge Hotels Limited
Formerly
  • Aeroclean (1963–1978)
  • Fernley Aeroclean Company (1963–1978)
  • Trusthouse Forte Airport Services (1978–1984)
  • Trusthouse Forte (U.K.) (1984–1991)
  • Forte (U.K.) (1991–2001)
  • Travelrest Services (2001–2004) [1]
Company type Private limited company
Industry Hospitality
Founded1985 (1985)
Headquarters Thame, England, United Kingdom
Number of locations
Nearly 600 hotels in the UK (2023) [2]
11 hotels in Ireland (2023) [3]
6 hotels in Spain (2023) [4]
Area served
 United Kingdom
Republic of Ireland
Spain
Key people
ProductsHotels
RevenueIncrease2.svg £909.9m (31 December 2022)
Increase2.svg EBITDA profit of £212.9m (31 December 2022) [3]
Increase2.svg £154.2m (31 December 2022) [3]
Total assets Increase2.svg £888.4m (net) (2010) [3] [ needs update ]
Owner GoldenTree Asset Management [5]
Number of employees
Over 12,000 (2022) [3]
Website travelodge.co.uk

Travelodge Hotels Limited, trading as Travelodge, is a private company operating in the hotels and hospitality industry throughout the United Kingdom, Ireland and Spain.

Contents

Company history

Travelodge in Bedford Bedford Travelodge - geograph.org.uk - 5470402.jpg
Travelodge in Bedford
Travelodge in Bromborough The Travelodge motel in Bromborough - geograph.org.uk - 1777506.jpg
Travelodge in Bromborough
Travelodge in York Travelodge Piccadilly York.jpg
Travelodge in York

Opening by Trusthouse Forte

In the early 1970s, Charles Forte imported the Travelodge brand from the United States with the hope of establishing it in the UK. The first Travelodge locations opened in 1973 in former Excelsior Motor Lodge branches, a brand of motels owned by Forte which were located near busy roads. [6] In 1976, Trusthouse Forte would open Little Chef Lodges; these were attached to Little Chef restaurants and the first chain of budget hotels in the UK. [7] In 1988, the two chains were combined and rebranded to become "Forte Travelodge".

Granada ownership

In 1995, Travelodge was bought by Granada, when the Forte Group (formerly Trusthouse Forte) underwent a hostile takeover. Granada decided to open Travelodges away from the roadside, with the first urban Travelodge opening in 1997. In 2001, Granada merged and then de-merged with Compass Group, where their hospitality interests were transferred to Compass. [6]

Sale to Permira

In February 2003, Travelodge and Little Chef were sold to Permira, who created parent company TLLC Group Holdings Ltd and moved Travelodge's headquarters from Toddington in Bedfordshire to Thame in Oxfordshire in June 2003. [8]

In 2004, it bought the Moat House hotel on Drury Lane for £11m, and the 'London Farringdon' and 'London Islington' Thistle hotels. [9] In July of that year, it decided to sell 136 of its hotels for £400m, then lease them back.[ citation needed ]

Purchase by Dubai International Capital

In August 2006, Travelodge was split from Little Chef (who were facing substantial financial difficulty), and sold to Dubai International Capital (DIC), a United Arab Emirates-based company, for £675 million.

In mid-2010, Travelodge bought 52 Innkeeper's Lodge properties from the Mitchells & Butlers pub chain, leaving less than half the original number of Innkeeper's Lodge hotels. In 2011, Travelodge announced a tie-up with British supermarket Waitrose to develop three joint sites in the UK. [10]

Financial restructuring in 2012

In February 2012, DIC had to prepare a bailout package due to a large debt of £17.5 million that was added to Travelodge's balance sheet following its purchase; despite significant earnings since 2006, these could not cover the debt repayments and the company recorded a debt of £517m in 2011. [11] The company undert passing to New York-based hedge funds GoldenTree Asset Management and Avenue Capital Group, as well as Goldman Sachs. [12] On 17 August 2012 Travelodge UK confirmed [13] that the financial restructuring would be through a company voluntary arrangement which would include:

However, Travelodge also stated that it was no longer viable to operate 49 hotels (8% of the estate), for which the company would now seek new operators.

Hotels transferred to other hotel operators include Edinburgh Belford transferred to Britannia Hotels, Blackpool transferred to Ibis, Huddersfield, Liphook and Walsall transferred to Metro Inns, and Bolton Services, Eastbourne, Edinburgh Haymarket, Manchester Airport, Manchester Worsley and Wentbridge transferred to independent operators. Travelodge's hotels in Coventry and Sutton Scotney (North and South) were closed. Travelodge UK also operate eleven hotels in the Republic of Ireland and five hotels in Spain. In late 2023, they also announced their new contactless hotel in St Albans. [14]

Description

Travelodge is known for its budget style hotels and room types. [15] They have a range of hotels across the United Kingdom, Ireland and Spain. Travelodge offers many different room types, from their iconographic standard budget style to a more sleek-high end look. In 2022, they introduced a new look and style and began refitting their existing hotels as well as any newly opened sites. [16] During this refurb, they renovated the Bar Cafés, reception areas, and rooms & bathrooms. [17]

Controversies

Overbooking

In 2006, the BBC programme Watchdog highlighted Travelodge's policy of overbooking their hotels, turning guests away even when they have booked against a credit card, which resulted in leaving customers stranded late at night with nowhere to sleep. [18] In 2018, Watchdog Live on The One Show returned to the issue, with further examples of Travelodge failing to provide rooms on arrival to customers with 'guaranteed' bookings. [19] The issue has been widely reported in subsequent years across the media, [20] [21] [22] highlighting that Travelodge would oversell expensive hotels, and then relocate travellers to cheaper alternatives in less desirable locations, yet not refund the difference. A report by The Guardian highlighted that customers were at risk of having nowhere to sleep even though they had pre-paid for their rooms, and that Travelodge offers no compensation for customers who are affected. [23] A report in the Daily Mirror claimed the practice was a breach-of-contract by Travelodge. [24]

Plymouth advertising

To advertise its new location in Plymouth in 2004, Travelodge ran a poster campaign using the phrase "Other hotels in Plymouth fleece you, we prefer duvets" which was not well received by other hotels in the area and was reported to the Advertising Standards Authority. [25]

Eviction of homeless families

In March 2020, The Guardian reported that Travelodge gave homeless families and key workers only two hours' notice to leave when it shut 360 of its UK hotels in response to the Coronavirus pandemic. Although the government had told hotels to close, this did not apply to those accommodating key workers or homeless people. [26] In May 2023, The Guardian reported that homeless families being housed in the Enfield Travelodge were being removed due to an upcoming Beyonce concert set to take place at the nearby Tottenham Hotspur stadium between 29 May and 4 June. [27]

Trivia

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References

  1. ↑ "TRAVELODGE HOTELS LIMITED overview - Find and update company information - GOV.UK". Companies House . 29 July 1963. Retrieved 30 January 2024.
  2. ↑ "Our Company | Travelodge" . Retrieved 16 August 2023.
  3. 1 2 3 4 5 Travelodge Hotels Limited, Report and financial statements for the year ended 31 December 2010, dated 13 June 2011
  4. ↑ "Inicio". Travelodge Hoteles España.
  5. ↑ Thomas, Nathalie (17 August 2012). "Travelodge agrees financial restructuring". Daily Telegraph, London.
  6. 1 2 "Travelodge". Motorway Services Online. Retrieved 18 May 2021.
  7. ↑ "Compass sells Little Chef and Travelodge". BBC. 18 December 2002. Retrieved 19 February 2008.
  8. ↑ "Compass sells Little Chef and Travelodge". BBC. 18 December 2002. Retrieved 19 February 2008.
  9. ↑ "Travelodge now offers even more low-cost central London hotel rooms - room rates start at just £45 in central London - Travelodge opens Travelodge London Islington and Travelodge London Farringdon" (Press release). Travelodge. 29 March 2004. Retrieved 14 September 2009.
  10. ↑ "Travelodge and Waitrose in tie-up". Independent.co.uk . 28 November 2011. Retrieved 24 April 2018.
  11. ↑ Ruddick, Graham (20 February 2012). "Travelodge pulled down by £100m debt finance bill" . Retrieved 24 April 2018– via www.telegraph.co.uk.
  12. ↑ Clarey, James (15 April 2012). "Dubai-owned Travelodge swaps CEO amid restructure – HotelierMiddleEast.com". Hotelier Middle East. Retrieved 24 April 2018.
  13. ↑ Press Release. "Travelodge agrees financial restructuring and initiates a Company Voluntary Arrangement". Travelodge UK. Retrieved 17 August 2012.
  14. ↑ "Contactless Hotels". Travelodge. Retrieved 24 November 2023.
  15. ↑ "Travelodge - motorway services". Motorway Services Online. 19 August 2023. Retrieved 28 August 2023.
  16. ↑ "New Look Hotels". Travelodge. Retrieved 24 November 2023.
  17. ↑ "Price Finder". pricefinder.travelodge.co.uk. Retrieved 24 November 2023.
  18. ↑ "Travelodge". BBC Consumer. BBC. 24 October 2006. Archived from the original on 27 February 2007. Watchdog researchers booked three rooms at a Travelodge in London. Each went to check in late at night but well within Travelodge's terms and conditions. All were told the hotel was full and that, despite their bookings, there were no rooms available.
  19. ↑ "Overbooked Hotels". The One Show. BBC. 18 April 2018.
  20. ↑ Smithers, Rebecca (29 May 2018). "'My Travelodge room for the marathon was a non-starter'". The Guardian.
  21. ↑ Morris, Hugh (15 February 2018). "Do hotels really overbook their rooms?". The Telegraph. One customer was on the sharp end of an overbooking at a Travelodge recently after being told that the branch in which the room had been paid for in advance was now full, so a bed would be found at a nearby property.
  22. ↑ Brignall, Miles (5 September 2015). "On your bike, Travelodge! Why did you let my room go to someone else?". The Guardian.
  23. ↑ Tims, Anna (15 February 2018). "Why won't Travelodge honour my pre-booking?".
  24. ↑ Dunham, Dean (22 April 2018). "Are hotels allowed to cancel bookings without notice? Your rights as Travelodge 'overbooks' dozens of rooms". The Mirror.
  25. ↑ "Poster campaign angers hoteliers". BBC News . 8 September 2004. Retrieved 24 April 2018.
  26. ↑ "Government clashes with Travelodge after homeless told to leave". The Guardian. 25 March 2020. Retrieved 29 March 2020.
  27. ↑ Gecsoyler, Sammy (23 May 2023). "Homeless families to be moved out of London hotel during Beyoncé tour". The Guardian. Retrieved 23 May 2023.
  28. ↑ Stokes, Paul (12 September 2007). "Telegraph". The Daily Telegraph . London. Archived from the original on 14 September 2007. Retrieved 3 October 2007. Pensioners David and Jean Davidson found living in a Travelodge hotel was a cheaper option than an old people's home and have never looked back.
  29. ↑ Stokes, Paul (11 September 2007). "Pensioners lived in a Travelodge for 22 years". The Daily Telegraph . Retrieved 12 April 2017.

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