Good for the bonds. The company outperformed our forecast in two key areas: revenues and M&A outflow. The former is also set to
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We are not short these bonds because of the rich coupon that would burn a hole in our pocket. But unless the company can guide to strong occupancy over the summer, we are inclined to
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Please find our updated analysis here.
We feel reminded of Emeria. Strong fundamentals conflict with challenging technicals, where a valuable company runs an outsized M&A and CapEx program to put its liquidity under pressure at the wrong moment. But that is where the similarities end. Documentation and legal setup are very different, and Travelodge still has one or two more cards to play to buy itself a little more time if it feels it can make investors comfortable next year.
Rino Mastrotto Client Call and presentation are now available on Rino Mastrotto’s page.
Read MoreBonds will be higher on hopes for relief from rises in business rates. The company had said the increase would be
Read MoreThe bonds will be softer on the downgrade to Caa1, but with a B- rating at S&P, forced selling will be limited. The rationale for the downgrade is
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The bonds will be slightly softer today, with expected net cost inflation of 6.5%, which outweighs a decent trading performance (albeit Q1 is seasonally the
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Travelodge Client Call and presentation are now available on Travelodge’s page.
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Please find our new analysis here.
Travelodge has grown rapidly since COVID in terms of scale and profitability. The industry in the UK is mature, and higher taxes and wages will crimp further growth,
Read MoreTravelodge - coming soon
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