£85m hotels buyout

Apr 23 2008 by Graeme King, The Journal

BUDGET hotel chain Travelodge has snapped up a North Tyneside property as one of six Menzies Hotels bought in one £85m deal.

The 127-room Menzies hotel at Silverlink Retail Park will be converted to the Travelodge brand as part of the company’s plans to expand its estate from 20,000 to 35,000 rooms by 2010.

Travelodge owner Dubai International Capital, which has also been pursuing a deal to buy Liverpool Football Club, has acquired the six Menzies hotels from property magnate Robert Tchenguiz. Besides the Silverlink site, Travelodge has also gained sites in Bath, Coventry, Edinburgh, Oldham and Stevenage, and overall the company will gain 700 rooms.

The business plans to spend £14m on converting its new acquisitions to fit its brand. Elsewhere in the country, Travelodge has been removing gyms, restaurants and meeting rooms from its sites to provide more space for no- frills bedrooms.