• Hotel chain could axe 150 sites
  • Fears mount for Travelodge's 6,000-strong workforce

By Greg Walton

PUBLISHED: 19:45 EST, 17 August 2012 | UPDATED: 10:45 EST, 18 August 2012


Almost 2,000 jobs are under threat after the UK's second biggest hotel chain was snapped up in a 1billon deal masterminded by Goldman Sachs.

Fears are mounting for Travelodge's 6,000-strong workforce as sources suggest up to 150 of the chain's worst performing hotels could be axed.

Goldman led a cabal of finance houses to take control of Travelodge – along with its colossal debt pile. It was previously owned by Dubai International Capital.

Travelodge is said to be struggling to make its sites on out-of-town A-roads pay

Travelodge is said to be struggling to make its sites on out-of-town A-roads pay

The chain has touted itself as an island of hope for jobseekers, participating in the Government's Job Centre Plus Scheme. In one recent round of hiring, it took on a batch of employees who had all been long-term unemployed.

It could now be forced to return those very staff to the dole queue.

Sources say the burden of any job cuts would fall disproportionately on rural areas. Travelodge is said to be struggling to make its sites on out-of-town A-roads pay.

It confirmed yesterday it has plans to offload leases on 49 troubled hotels. Additionally, it has pleaded with landlords at 109 of its hotels to reduce its rent bill.

However, top industry sources say the chain is unlikely to find any takers for the 49 sites, in which case the 350 workers at those hotels would almost certainly face the chop.

'There isn't another hotel company in the UK that could make them profitable,' said one expert.

Little Chef was similarly squeezed after demand plummeted when its most lucrative sites were bypassed by larger roads.

Experts fear that Travelodge's new owners could be planning to offload even more properties than the 49 announced yesterday. 'There's 150 hotels that don't make any profit,' said a hotel industry source.

If it was forced to shut 150 hotels, up to 1,800 jobs could be at stake.

Little Chef was also financially squeezed when its most lucrative sites were bypassed by larger roads

Little Chef was also financially squeezed when its most lucrative sites were bypassed by larger roads

Despite the bad news – contained in a rescue deal known as a Company Voluntary Agreement – there were also promises of new investment.

Travelodge said that it, along with its new owners, planned to invest 75million in the business including 55million to refurbish older hotels.

Under the terms of the CVA, banks wrote off over 235million of Travelodge's debts which will bring the firm's total debts down to 330million.

The CVA will be voted on by creditors on September 4 and must command approval of three-quarters of lenders to pass.

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You may think that capitalism stinks......but it's so far ahead of whatever's in second place....

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I attempted to stay in the St Austell T Lodge a few years ago, was uninhabitable. Wrote to the Chief exec Grant Hearn needless to say no reply, it took three recorded delivery letters and threat of court action to get my money back. Therefore this headline comes as no surprise to me!

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Travelodge is like an open prison. Norwich is a shocker. No soap, block walls, noisy because no sound dampening, outside bins emptied at like 5am... Anyway, there's a demand for prisons, go talk to them, should be easy to convert.

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'1,800 jobs at risk as Travelodge axes dozens of chain's worst-performing hotels' //////////////////////// Note , not: 'losing money' ....., not: 'just breaking even' , but , just not performing as good as the rest in not making enough profit. Since when was, not quite making enough profit, a good reason to axe 1800 jobs ?

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Having recently stayed at the Travelodge in Luton I can understand why. The room (a family room) was shabby, the bathroom looked like it hadn't been cleaned in weeks, and the window was so poorly fitted it may as well have been wide open. They really need to spend some money refurbishing some of the older hotels. The staff, however, were amazing and the breakfast was excellent. The receptionist was very apologetic when we told her about the room, but was unable to move us as they had no other family rooms available.

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I've stayed in a few Travelodges and I've enjoyed every stay. No complaints.

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Stayed with Travelodge a few times in different areas round the country. They certainly aren't the classiest of joints, but I have always found them clean and the staff polite and friendly. I've never paid more than £29 a night.

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We have recently stayed in 3 different Travelodges & couldn't fault them. Very good price, (booked in advance at the saver rate), comfortable & clean rooms & helpful staff in all 3 locations.

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They would do far better if like Premier Inn you could get a decent breakfast in the pub next door. Travelodge are sited next to Little Chefs and Mc Donalds and they turn their water temps right down so they say to stop children being scalded. In truth I would imagine its to save money!I like a hot bath, not a cold one.

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We often stayed in Travelodge on the west of London but boy hasnt it gone down. The last time we stayed there I got flea bites all over. We havent been back. We stay at another budget one our Lenny Henry stays at. Much cleaner with staff that care

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