It is hard to believe the arrogance (or perhaps stupidity) of Goldman by playing a cynical game of spoof with investors holding the Travelodge covenant. This is at a time when, after a lot of hard work in the operational business, the hotelier finally began to produce some good financials and build levels of investor confidence not seen since pre they’re near 2012 debacle. Goldman, Goldentree and Avenue are well aware that it is not just the big pension funds who are landlords of Travelodge properties either but the smaller investor too many of whom cannot possibly accept what has been proposed as they also have their own banking and debt obligations. This misjudgment will completely destroy investor levels of trust in the Travelodge brand at a time the commercial property investment market actively seeks properties with long leases and attractive rent indexation. Ironically their actions could cost the original investment they made in 2012 far more than a few quarters rent.
Duncan MacLaren
LinkedIn | May 2020
