13th April 2015
Travelodge has reported a significant jump in earnings some three years after it faced ruin.
On Monday the discount hotel group announced that its underlying earnings has surged by 63.5% during 2014 to more than £66m, while revenue per room soared by 16.8% to £34.24.
The positive market update arrives as Travelodge’s owners are reportedly gearing up to sell the business for a potential £1bn.
In 2012, investment banking giant Goldman Sachs, Avenue Capital and GoldenTree Asset Management took over the group when it faced collapse after amassing debts of £500m.
BBC News reported that the consortium is understood to be looking to appoint advisers to examine strategic options, including a possible stock market flotation.
Speaking to BBC Radio 5 Live’s Wake Up To Money on Monday Travelodge chief executive Peter Gowers said the current owners were “not natural long-term holders of the business”.
He added: “I think you’d expect them always to be thinking about ways to realise value from their shareholdings.
“There’s probably never been a better time to run a value hotel business than now because the value hotel sector is huge. Britain is becoming a nation of value shoppers.”