Travelodge could be snapped up for £1bn as private equity firms close in
Hotel chain Travelodge has reportedly caught the eye of several private equity firms and could be sold for £1bn instead of floating on the stock market.
Advent International is interested in buying the group, as well as a number of other firms, according to the Sunday Times.
Deutsche Bank was appointed in July to advise Travelodge's owners, investment bank Goldman Sachs and hedge funds Avenue Capital and GoldenTree Asset Management, on a potential sale or stock market flotation.
Chief executive Peter Gowers said in April that the group's shareholders “are not natural long term holders of a hotel business and they are working with Deutsche Bank to explore their options for the future”.
He also stated: “There's probably never been a better time to run a value hotel business than now, because the value hotel sector is huge. Britain is becoming a nation of value shoppers.”
Gowers was brought in in 2013 to lead a turnaround after the chain underwent a painful debt restructuring in 2012.
The company has since seen a surge in sales, after a £100m revamp process, and profits jumped by 63.5 per cent in 2014 to £66.2m.
Travelodge declined to comment.