On Wednesday, the LXi REIT confirmed that it was planning to sell 66 Travelodge hotels in response to recent press speculation.
The REIT has received an offer for the sale of 66 Travelodge hotels, totalling £210 million, in line with their current book value as of 30th September 2023.
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If the sale goes through, the proceeds will be used to pay down debt, reducing the group’s loan-to-value ratio from 38% to 34%.
The company further addresses the fact that this would also decrease the portion of the total rent roll contributed by Travelodge from 18% to 11%.
It’s important to note that the sale is subject to contract and due diligence, and there’s no guarantee it will be finalised.