UK budget hotel group Travelodge has signed 11 new hotels to its growing portfolio, taking over a tranche of former Campanile branded hotels.
The bulk of the additions are Campanile sites, with Travelodge acquiring five freehold properties and four long leasehold sites. The new hotels will be in Birmingham, Bradford, Dartford, Leicester, Liverpool, Manchester, Northampton, Milton Keynes and Swindon.
Swift conversions
Two further properties have been added on a leasehold basis. In Bromsgrove, the group has signed a new 25 year lease on a 43 room hotel that was formerly an Ibis. Following a refit to meet Travelodge standards, the hotel is expected to open in May 2025. And in Wakefield, a former Citilodge independent hotel is being converted to a Travelodge by the owner. Travelodge will be signing a 25 year lease on the 74 room property.
These two new hotels are following a similar route to that taken in a recent conversion in Bromley town centre. There, Travelodge took over a former Ibis hotel, signing contracts in January and opening the renovated property just two months later.
“The acquisition of these hotels marks another positive step in our UK development strategy, as we seek to grow and optimise our estate of hotels and enhance value by diversifying our freehold and leasehold split,” said Steve Barnett, chief property and development officer for Travelodge. “There are still many locations throughout the UK and Spain where we can open a new Travelodge hotel, to provide great value and quality accommodation.”
Barnett has a list of more than 300 potential locations around the UK, where he is looking to add further Travelodge hotels. And the group is just beginning its journey in Spain, where it considers the opportunities for growth to be substantial.
Currently, the group has 12 hotels in Spain, having recently doubled the size of the portfolio with a deal to acquire six properties there. Sites, or hotels for conversion, are being sought in a further 20 key locations across the country.
A key brand in the UK market
Travalodge is a major market presence, welcoming more than 22 million guests each year across its UK, Irish and Spanish hotels. In the UK, where there are 588 hotels, the group is on its way to completing a refresh of the entire estate, updating properties to the latest brand styling and standards. As well as decorating guest rooms, Travelodge has been rolling out its 85 Bar Cafe at selected hotels, offering guests the option of grabbing a drink and snack while staying.
The Travelodge acquisition deal means a major shrinking of the Campanile hotel brand in the UK. Created in 1976, the two and three star brand is owned today by Louvre Hotels, part of the Chinese giant Jin Jiang. Campanile has over 400 hotels in 13 countries, with a strong market presence notably in France, where the majority of the portfolio is located.
