Travelodge has made its first freehold acquisition, purchasing an office building in London’s St Paul’s area as part of its strategy to diversify its property portfolio.

The acquisition of Genesis House on Godliman Street follows the budget hotel company’s outreach to more than 100 of the UK’s largest office owners to explore potential conversion opportunities.

The Travelodge OpCo Group will self-fund the freehold purchase, with Lewis & Partners advising the sellers.

The 24,000-square-foot property is set to be converted into a 95-room Travelodge hotel, featuring an on-site 85 Bar Café restaurant, pending planning approval.

Conversion work is scheduled to start in early 2026, with the hotel expected to open in the first quarter of 2027.

The site is currently leased to office tenants on short-term agreements.

Jo Boydell, chief executive of Travelodge, said: “The acquisition of Genesis House marks a positive step in our UK development strategy, as we seek to grow and optimise our estate of hotels and enhance value by diversifying our freehold/leasehold split.

“Office-to-hotel conversion is a sustainable way of developing, as it allows us to meet the growing demand for budget hotels while reducing the carbon impact that new development brings. We are also happy to be continuing to expand our portfolio in London, where we currently operate 82 hotels, with a further five developments underway.”

Travelodge noted that it sees 'significant growth opportunities' across the UK and has identified over 300 target locations for expansion.

Founded in 1985, the company now operates a portfolio of over 600 hotels across the UK, Ireland, and Spain.