A new hotel is up and running in Peterhead, thanks to an innovative lease deal with fledgling joint venture AGO Hotels.
The former Travelodge, on Chapel Street, is now operating as part of the ibis budget brand under a 25-year agreement.
It was launched last year – by Oasis managing partner Viv Watts and hospitality industry veteran Lionel Benjamin – in the wake of a Travelodge company voluntary arrangement (CVA).
It is fantastic to see UK hotels turning the lights back on, and we are especially pleased to be able to open the doors to our new ibis budget hotel in Peterhead.”
Viv Watts, AGO Hotels
The Travelodge CVA shaved nearly £150 million from the chain’s rent bill, with some landlords sacrificing rent payments until 2022.
Other landlords sought alternatives – such as AGO, which pools risk through a hybrid lease structure that guarantees landlords their rent as well as a share of the hotel’s profits.
AGO now has 10 former Travelodges in its portfolio, including the Peterhead site, operating under Accor’s ibis budget brand.
The ibis budget chain boasts more than 600 hotels and 62,000 rooms in 20-plus countries, and is continuing to expand internationally.
Mr Watts said: “It is fantastic to see UK hotels turning the lights back on, and we are especially pleased to be able to open the doors to our new ibis budget hotel in Peterhead.
“Despite launching AGO in the height of the pandemic, our distinctive hybrid lease model has shown its resilience in tough market conditions, and we have continued to grow rapidly.
“We are also able to proudly say we have continued pay full rents to all AGO landlords.
“Now, we are looking forward to welcoming guests into our existing hotels, as well as continuing to look for new locations across the UK, where we can drive returns for landlords through our profit-sharing lease model.
“Our business model will guarantee rent and include owners in the hotel’s profits as the market returns to normalcy.”
Mr Benjamin added: “We are so pleased to finally be opening the doors of the new ibis budget Peterhead.
“Our teams across all of our hotels are raring to go, and we look forward to providing a comfortable and affordable setting in Peterhead for those traveling for work, enjoying a staycation or visiting friends and family.”
AGO said its new, 63-bedroom Peterhead hotel was operating with “elevated hygiene and prevention measures” to ensure the safety and wellbeing of all guests and staff.