In this tough economy the tourism and travel industries have taken quite a hit. With more people staying local for their vacations and the surge in online hotel discounts, many major travel entities are suffering. The UK based hotel chain, Travelodge, is reporting financial troubles that could land them in bankruptcy court if the parent company cannot resolve their debts and regain profitability in the next few months.
Owing close to $634 million in debt to multiple creditors, Travelodge have previously pursued refinancing efforts and eventually settled on a buyout in 2006 by Dubai International Capital. Having since failed to adequately restructure their debts, rumors have been circulating as to whether the hotel chain is headed for bankruptcy. However, company executives deny the rumors saying, ” All the lenders are working together to find a sensible solution to the debt structure.”
Travel Season Hopes
As summer approaches many of the travel industries key retailers are hoping for financial gain. 2011 was one of the worst tourism and travel seasons in years, leaving many retailers in the red. As reports of consumer confidence and spending already on the rise in 2012, hotels, restaurants and major tourism hot spots are hoping for the best. For now Travelodge executives insist that their 499 internationally located hotels will remain in operation and even have plans for an additional 41 more in the UK alone.