The number of hotel owners looking to exercise brand swap options on both sides of the Atlantic is accelerating, fuelled by unpaid rents.
Last weekend Travelodge Owners Action Group, representing the majority of UK Travelodge landlords set up AGO Hotels, exercising their break option following Travelodge’s recent CVA action. This move could see most Travelodge UK hotels converted to Accor, as Accor are understood to be leading the race to fly the flag for more than 400 hotel owners that make up Travelodge Owners Action Group.
Across the pond, IHG have not paid circa $8.5 million in guaranteed property returns on over 100 hotel properties this month. The portfolio of properties impacted are owned by Service Properties Trust, that also own a 34% shareholding in Sonesta International Hotels.
Sonesta currently has a portfolio of 53 hotels, so adding just over a hundred more would build their brand and geographical footprint substantially.
IHG has a 24 August deadline to make payments and interest charges, financial media commentators currently are split on a predicted outcome, with some citing more rivals to enter the fray, watch this space.