Travelodge said it had gone unconditional on and begun work on two hotel developments since agreeing a financial restructuring via a Company Voluntary Arrangement and a reduction of levels of rent at certain sites in August.
Following the August announcement Travelodge on Friday completed its financial restructuring, in a move which injected £75m into the company.
The restructuring was completed with three investors: GoldenTree Asset Management, Avenue Capital Group and Goldman Sachs.
Travelodge said £55m will be invested into a major refurbishment programme across the estate covering over 11,000 rooms and 175 hotels. The refurbishment programme will commence in early 2013 and continue through to summer 2014.
Today Travelodge said it had exchanged on and begun work on a first two hotels subsequent to the CVA process being arranged.
Ribble Property Investment has started work on site in Southport constructing a 101-bed Travelodge hotel.
Travelodge will occupy the Grade II listed Ribble Building on Lord Street which is cbeing constructed and refurbished by Denizen Contracts. The ground floor will be occupied by Frankie’s sports bar and grill, a collaboration between Marco Pierre White and Frankie Dettori.
The Travelodge contract went unconditional on 14 September. The site concludes Travelodge’s longstanding requirement for Southport.
Whitestone Retail & Leisure acted for Travelodge while Fladgates acted for Ribble Property Investment.
Tony O’Brien, UK Development Director for Travelodge Hotels, said: “I am delighted that Ribble Properties have begun work on what will be a significant addition to the hotel market in Southport.
“Located on Lord Street, the Ribble Building is a landmark in the town and this development will enable us to meet our long-held objective of being in the heart of Southport.” Paul Bolton of Ribble Property Investment said:
"We are very pleased to have fully commenced development on site and believe the location on Lord street will prove an excellent trading opportunity for both Travelodge and the Frankies Sports Bar and Grill."
The site is the sixth costal location that Whitestone Retail & Leisure, Travelodge’s retained agents for North West England and North Wales, have secured for Travelodge over the last two years. The other locations are Llandudno, Colwyn Bay, Caernarfon, Morecombe and New Brighton.
Separately Ropemaker Properties, the property arm of BP Investment Management, has agreed to forward fund the development of an 80-bed Travelodge and 35,000 sq ft Waitrose in Egham, Surrey.
Work has begun on site, with completion scheduled for spring 2014. The development is being undertaken by Albermale Egham, a joint venture between Albermale Syndicates Liberty Properties.
Alan Oliver, South London Development Manager for Travelodge, said: “The Egham development is a fantastic investment and I am delighted that BP Ropemaker have forward funded this development.
“The deal was struck in full knowledge of the Travelodge restructure and we will have further news soon on other sites going unconditional across the country.”