The future of Travelodge appears to be on a more stable footing after creditors of approved a company voluntary arrangement.

Under the terms of the deal, the low-cost hotel brand will cut the amount of rent it pays to landlords in the short-term as it battles a fall in demand in the wake of the Covid-19 outbreak.

Travelodge said this would protect jobs in the long-term.

A short statement added: “The successful vote will enable Travelodge to navigate the short-term challenges facing the business as a result of the Covid-19 pandemic.

“The directors of Travelodge would like to thank its creditors for their support during this period and look forward to re-opening and welcoming guests back to its hotels in the near future.”

The package will see shareholders put forward a £240 million in support, comprising the use of more than £100 million in reserves, taking on £100 million in extra debt and putting in up to £40 million in new equity.

Founded in 1985, Travelodge currently operates 590 Travelodge hotels in the UK, Spain and Ireland.

The company welcomes approximately 19 million customers every year and over 10,000 people work across its business.