Travelodge Hotels Limited agreed to acquire 66 Travelodge branded hotels of LXi REIT plc from LXI REIT plc (LSE:LXI) for £210 million on January 8, 2024. The portfolio includes hotels in London, Birmingham, Bath, Leeds, Liverpool, and roadside locations. Post completion of the acquisition, the group looked forward to continuing to work with LXi, which remains its largest landlord at another 69 Travelodge hotels. The purchase price for the transaction is expected to be funded through a combination of a further shareholder investment from Golden Tree, the proceeds of a third-party financing facility secured on the assets acquired in the transaction, and approximately £35 million of cash from Travelodge. Completion of the sale is scheduled to occur on February 28, 2024. The majority of the sale proceeds will be used to pay down debt reducing LXi?s loan to value (LTV) to 34% from 38% and reducing Travelodge?s proportion of group rent to 11% from 18%. The sale and debt repayment are not anticipated to have a material impact on the Company's earnings given the debt cost savings. GoldenTree Asset Management owner of Travelodge supported the acquisition of 66 Travelodge hotels from LXi REIT. Simon Kiff of Jones Day acted as legal advisor to Travelodge.

Travelodge Hotels Limited completed the acquisition of 66 Travelodge branded hotels of LXi REIT plc from LXI REIT plc (LSE:LXI) on February 29, 2024.