Landlords to take £146m rent hit

Recently reported in the Financial Times, Travelodge has said it is expected to lose £350m in sales this year and that it would take hotels “several years” to return to 2019 levels, when its revenues were £727.9m for the full year.

The budget hotel company, is asking landlords to waive up to £146m in rent over the next two years as it cuts costs amid uncertainty over when the hotel sector will recover after coronavirus.

It has proposed that the company move to paying rent monthly, rather than quarterly, until the end of 2021 and that some landlords accept reduced sums.

The hotel operator said that the £146m it was asking the landlords to forgo amounted to roughly 3 per cent of the £4bn due in rent for the remainder of their leases. In return, it has offered landlords an optional extension to leases at the end of their term and a share of profits if Travelodge outperforms a baseline set by the company.

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