Travelodge hotel group and Twenty10 launch £100m property fund

14th December 2009, 3:14pm

Travelodge and Twenty10 Fund Management Ltd today jointly launched a new £100 million development fund to step up the budget hotel company's UK growth drive.

The new fund will develop five new hotels in London and other major UK cities each year. These properties will be leased to Travelodge on 25-35 year leases.

The fund will target new developments both as stand alone properties and mixed used schemes.

Paul Harvey, managing director of development at Travelodge, said: "This fund will ensure that we keep our foot firmly on the accelerator pedal in our UK growth drive. We are now establishing ourselves as the number one hotel brand in many of the countrys largest cities and this new fund will push our growth even further."

Christopher Stainforth, chairman of Twenty10 Fund Management Ltd, added: "As well as helping the expansion of Travelodge's UK portfolio, the Fund offers investors the chance to share in the creation of a portfolio of institutional grade assets let to a tenant with a strong covenant and at an attractive net initial yield."

The seven year Fund, led by Stainforth, is currently in the process of raising £50 million of equity, which will be supplemented by £50 million of bank debt. Travelodge will also invest £500,000 in the Fund.

Related Articles:

• 23 Aug 2010 - Travelodge cements presence in Edinburgh with 11th hotel opening
• 28 Jul 2010 - Travelodge to sponsor Champion Bottled Beer of Britain competition
• 16 Jul 2010 - Travelodge bolsters aggressive growth plans – by acquiring 52 Mitchell and Butler pub group Innkeeper Lodges
• 06 Jul 2010 - Boris Johnson opens Travelodge's 400th hotel in London Waterloo
• 01 Oct 2009 - Travelodge and Marston's join forces
• 17 Aug 2009 - Travelodge launches first Essex hotel
• 18 Jun 2009 - Travelodge launch £100m raid for struggling hotels
• 05 Jun 2009 - Business set to boom for UK hoteliers
• 29 Apr 2009 - Hotel room sold every second at Travelodge
• 26 Mar 2009 - Tough times predicted for UK hotel industry
• 25 Mar 2009 - UK's first Travelodge iBooker launches today
• 18 Mar 2009 - Travelodge's website most visited in UK
• 19 Nov 2008 - Price cuts at Travelodge
• 14 Aug 2008 - Travelodge expands its portfolio

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