|By Greg Walton and Ben Griffiths, Daily
Mail, LondonMcClatchy-Tribune Regional News
Aug. 14, 2012--Travelodge could off-load half of its hotels as one of its options as it seeks to stabilise its ailing finances, according to an industry source.
Britain's second largest budget hotelier is believed to be preparing a company voluntary arrangement that will reset how it deals with its debts.
Sources say the hotel chain's lenders, which include Goldman Sachs, are keen for Travelodge to rethink the way it deals with its pounds sterling 500m debt pile. Its interest bills are said to be around pounds sterling 100m annually.
According to the industry expert, the Dubai-owned chain could be forced to carve out a core of profitable hotels.
It is understood that Travelodge is currently only looking to off-load the leases for its 50 least viable sites.
But the source believes that Travelodge could eventually pull out of leases on half of its properties.
If Travelodge were to abandon half of its 513 sites it would be a disaster for the jobs market as it employs 6,000 people in the UK.
The source said: "They'll be working toward a core of half that actually make a profit. That would make a more compelling model."
However, a spokesman for Travelodge said: "We will not be getting rid of half our hotels."
(c)2012 Daily Mail (London, )
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