East Yorkshire jobs secure in Travelodge hotel shake-up
EAST YORKS: Budget hotel chain Travelodge says its two hotels in the region will continue trading as normal despite a major shake-up of its business, meaning jobs at the two hotels are secure.
The operator is seeking a company valuation assessment (CVA) to help it tackle £500 million of debts.
As part of the CVA, 49 hotels across the country are being transferred to other operators.
In addition, rental deals with landlords involving a further 109 hotels are being renegotiated.
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In each case, the rent at each site is expected to be reduced to an equivalent monthly rent of 75 per cent for the next three years.
The Travelodge on the eastbound carriageway of the A63 at South Cave is among those included in the proposed cut-price rental agreement.
However, the Travelodge hotel in Pryme Street, city centre, is among those unaffected by any of the changes.
The 80-room hotel was opened in May last year after being built by the Hull developer Wykeland.
Between them, the two East Yorkshire hotels employ about 30 staff.
Grant Hearn of Travelodge said: "The financial restructuring, including the CVA, will leave Travelodge in a much stronger position and will ensure a long-term, sustainable future for the business.
"Once this joint process is completed, Travelodge's debt, interest costs and lease liabilities will be significantly reduced.
"This new appropriate level will provide greater security for our staff, suppliers, landlords and developers."
The Travelodge on the M18 near Doncaster is one of those being transferred.