LXi REIT confirms potential sale of 66 Travelodge hotels

(Sharecast News) - LXi REIT responded to press speculation on Wednesday, confirming that it was currently under offer and in solicitors' hands regarding the potential sale of 66 Travelodge hotels. The FTSE 250 company said the proposed transaction carried a combined value of £210m, consistent with its current book value as of 30 September.

If the sale was successfully concluded, the firm intended to allocate a significant portion of the proceeds towards debt reduction.

Such a move would decrease the group loan-to-value ratio from 38% to 34%.

Additionally, the sale would significantly reduce the Travelodge segment's contribution to its overall rent roll.

As of 30 September, the Travelodge proportion represented 18% of LXi's total rent roll, but post-sale, it was expected to be reduced to 11%.

"The sale remains subject to contract and due diligence, and there is therefore no certainty that the sale will complete," LXi said in its statement.

"A further announcement will be issued following the exchange of contracts."

At 1002 GMT, shares in LXi REIT were up 0.86% at 95.96p.

Reporting by Josh White for Sharecast.com.