Irwin Mitchell, Jones Day and K&E advise on £520m sale of Travelodge hotels

Irwin Mitchell, Jones Day and Kirkland & Ellis have played key roles in the sale of 144 Travelodge hotels, owned by the company’s biggest landlord Prestbury, to Goldman Sachs, GoldenTree Asset Management and Avenue Capital.

The £520m deal places the property portfolio in the hands of the consortium that owns Travelodge having bailed the company out of £235m of debt with a debt-for-equity restructuring two years ago (17 August 2012).

Kirkland & Ellis advised Goldman Sachs, GoldenTree Asset Management and Avenue Capital Group on the acquisition. The team was led by restructuring partner Kon Asimacopoulos and private equity partner Christian Iwasko.

A team from Jones Day advised the consortium on the real estate aspects of the deal, led by real estate partner Stephen Walter.

Irwin Mitchell is understood to have acted for Prestbury on the sale. The firm declined to comment.

However, it is likely that real estate partner Rob Thompson led the deal, as Prestbury is one of the clients his team is believed to have brought over to Irwin Mitchell from SJ Berwin when they joined in 2010 (27 September 2010).

Background to the deal:

Kirkland’s Asimacopoulos also advised Goldman Sachs, GoldenTree Asset Management and Avenue Capital Group in the 2012 restructuring of Travelodge’s debt.

Before passing ownership to the consortium, Travelodge was owned by private equity group Dubai International Capital (DIC).

DIC bought Travelodge in 2006 from Permira, instructing Freshfields Bruckhaus Deringer corporate partners Chris Bown and Bruce Embley. Clifford Chance corporate partner Matthew Layton advised Permira (22 August 2006).