Budget hotel chain Travelodge has been given the go ahead to cut rents and sell 49 hotels in a bid to save the company.
The Company Voluntary agreement (CVA) launched on 17 August, to reduce the large debt and expensive lease agreements, has been approved by 97% of Travelodge creditors and landlords.
It states that 49 hotels will be sold in the next six months and that 109 hotels will have rents cut by 25%.
347 hotels will be retained at the current rents.
Richard Fleming, UK head of restructuring at KPMG and proposed ‘supervisor’ of the CVA, said: "The impact of the economic downturn on Travelodge’s business has been compounded by a large debt burden and expensive lease arrangements.
He said the CVA proposal had been to tackle the leases which were unsustainable, the majority of which were agreed during the pre-2008 property peaks.
