By Denis Sheehan MIH
London’s money markets are predicting Travelodge will go on the market soon with the price of the budget hotel chain costing the acquirer circa one billion pounds.
Travelodge was acquired in 2012 by US hedge fund GoldenTree that is now mulling a sale, the price tag being reported in part being set by a post-pandemic boom in demand.
Travelodge is benefiting from an increased volume of cost conscious holidaymakers fuelling a boom in UK holidays. The hotel group also cites increased demand from business travellers looking for lower cost stays.
The current economic outlook in the UK does not look like changing the cost of living, and or the cost of doing business crises any time soon. So, the quoted fundamentals driving increased revenues for Travelodge, could from an acquirer’s perspective look justified.