Squids in

19 June 2020 By Aimee Donnellan Follow @aimeedonnellan

The Wall Street giant and hedge fund backers of hotel chain Travelodge are trying to slash their rent bill by over a third. Normally, landlords would only play ball if the tenant was at death’s door. Covid-19 is inverting that pecking order – to real estate owners’ detriment.

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Landlords of hotel chain Travelodge will vote on insolvency proceedings that could lead to rent reductions at a meeting on June 19.

Owners Goldman Sachs, GoldenTree Asset Management and Avenue Capital have proposed a plan that would see the chain’s rents reduced by 144 million pounds until the end of 2021, and is giving those that accept a chance to break the rental contract within the next six months.

The owners are also offering 40 million pounds in additional equity.

Secure Income REIT, Travelodge’s largest landlord, is expected to vote in favour of the agreement.

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