Travelodge halves losses to £71 million

Travelodge halves losses to £71 million

Losses at Travelodge more than halved from £148.1m in 2011 to £71.1 million last year, according to figures filed at Companies House.

The loss came as the budget hotel chain went through a debt-for-equity swap and company voluntary arrangement last year.

Wall Street hedge funds GoldenTree Asset Management and Avenue Capital Group took control of the company last autumn, along with Goldman Sachs.

Accounts for Travelodge Hotels Limited, the principal trading company for the hotel operator, show that it generated £391.4 million in turnover last year, up from £369.5 million the year before, the Daily Telegraph reported.

The company also made a small operating profit in the year to December 31. But exceptional charges of more than £85 million, including £41.1 million relating to the financial restructuring, pushed it £71.1 million into the red at a pre-tax level. The exceptional costs also included £27.3 million of fees paid to advisers.

Accounts for Travelodge’s new parent company, Thame and London Limited, show the group had debts of £431.7 million as of December 31, compared to more than £1 billion prior to the restructuring, the newspaper reported.

The new owners agreed to pump £57 million into Travelodge to refurbish rooms as part of last year’s restructuring.

The group is currently searching for a new chief executive after Grant Hearn announced in July that he would step down following a decade with the company.

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