Ago Hotels, a new hotel platform set up in July together with French hospitality group Accor, has secured nine hotel leases from Travelodge, the budget operator at the centre of a rent dispute earlier this year.

Travelodge hotel in the UK

Travelodge Hotel in the UK

Ago Hotels said it gained the leases ahead of a break clause deadline in Travelodge’s company voluntary arrangement (CVA) on 18 November 2020.

Under the deal, Accor will act as operator for the hotels under its Ibis budget brand and Ago will fund the rebranding costs.

Ago Hotels was co-founded by Viv Watts and Lionel Benjamin to offer landlords a hybrid lease which provides a combination of guaranteed fixed rent plus profit participation, delivering stable asset values and cash flow.

The platform was launched following a dispute over the summer between Travelodge UK and its landlords over rent payments.

The row led to the Travelodge Owners Action Group being set up - which later launched Ago Hotels - in a bid to tempt the owners of over 400 Travelodge properties to leave Travelodge by exercising their right to break their contracts.

Commenting on the transfer of the leases, Ago Hotels said: ‘The first nine hotels to switch to the Ago Hotels platform is a real milestone, marking the culmination of a long journey to provide landlords with an alternative lease structure to safeguard their interests and the value of their investments.

‘The platform has very significant expansion potential by offering the best of both worlds - institutional leases and operational participation.’

It added: ‘Ago Hotels is in discussions with owners of individual hotels and portfolios who stand to benefit from our disruptive business model, enjoying downside protection and upside participation.’