A sign for a Travelodge is seen at Hickstead in Sussex in southern England
The bank and the hedge fund groups took over Travelodge in 2012Reuters

Owners of budget hotel chain Travelodge are officially preparing a sale of the business, according to the Daily Telegraph.

The Telegraph reported that the Travelodge owners, US bank Goldman Sachs and hedge fund groups GoldenTree Asset Management and Avenue Capital, have asked Deutsche Bank for advice on the sale.

Travelodge chief executive Peter Gowers said in April, when it was first announced the owners were considering selling the company, that there is no better time to own a value hotel business, arguing that "Britain is becoming a nation of value shoppers".

He added: "Our shareholders are not natural long-term holders of a hotel business and they are working with Deutsche Bank to explore their options for the future."

The three owners took over the company in a 'rescue deal' in 2012, after the company reported it had an outstanding debt of £1bn ($1.56bn, €1.44bn) under management of Dubai International Group.

Gowers was given the task of turning around the company by trying to cut the debt and generate revenue. In the half year to 1 July 2015, the company reported that sales jumped by almost 18% to £261m.

The turnaround included a £100m modernisation of the company, which is almost completed, Goldman, GoldenTree and Avenue said in its half year report in July.