Secure Income REIT is taking action to recover outstanding rent owed by Travelodge.
Rent from Travelodge amounts to 6.4% of the REIT’s annual rental income, according to the company.
The REIT has criticised the budget hotel chain, stating it is “disappointed and surprised” that Travelodge has not provided a plan setting out how it will pay its outstanding quarterly rent bill.
The announcement follows a report in the Sunday Times that Travelodge has appointed Deloitte and Moelis to negotiate rent breaks or deferrals with its landlords.
Secure Income REIT said that discussions with the hotel chain’s senior team had been ongoing for weeks over the rent bill and it had been expecting a rent payment plan of action from Travelodge.
The REIT said: “[Travelodge] is owned by large, multinational investment businesses in Goldman Sachs, Avenue Capital and GoldenTree. We are disappointed and surprised that they have not yet presented a proposal.
“In light of this, Secure Income REIT has already reluctantly initiated actions to recover this debt, but remains hopeful that this matter can still be settled prior to those options being fully pursued.”
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