WESTLAKE, Ohio -- TravelCenters of America (TA) has officially launched Operation Refresh, a $125 million capital improvements project dedicated to enhancing the customer experience at its locations across the country.
More than 800 individual renovation projects, including new modern showers and marble-tiled restrooms, expanded and upgraded parking lots, restaurant renovations, system upgrades, exterior painting and lighting enhancements and much more are underway or scheduled through the end of 2008.
Operation Refresh reflects [image-nocss] TA's dedication to providing our customers with the best maintained facilities in our industry, said Tom O'Brien, the chain's president and CEO. Well-maintained, large, convenient facilities, the widest assortment of amenities and services available and welcoming, friendly employees will allow TA to set a new standard in interstate travel hospitality for our customers.
The company expects Operation Refresh, soft launched in May 2007, to be substantially completed by the end of 2008.
In August, TA said that because of a slowdown of trucking activity, it determined to use its strong financial position to accelerate Operation Refresh and now expects to spend approximately $40 million in 2007 and $70 million in 2008 on this program. It said it expects that a substantial portion of this program will be funded by Hospitality Properties Trust (HPT), TA's principal landlord, as it draws the $125 million of committed funding for capital improvements at HPT-owned properties; $9.1 million has been drawn and spent through June 30, 2007.
TA is a major, national chain of travel centers, with facilities in 44 states and Canada that operate under the TA and Petro brands. It acquired Petro in late May 2007. As of June 30, 2007, TA's business included 233 sites, 164 of which were operated under the TravelCenters of America or TA brand names and 69 that were operated under the Petro brand name.
As reported by CSP Daily News in mid-August, TA recently implemented plans for a reorganization of its management and field staff. It gradually reduced corporate office staffing principally at Petro's El Paso, Texas, headquarters. At completion in June, approximately 60 redundant positions will have been eliminated. And field management functions and the corporate office, marketing and operations personnel were realigned, resulting in the elimination of management layers, which resulted in the elimination of approximately 100 positions during September.
We expect that our reorganized staff will be able to react more quickly to both opportunities and challenges in the marketplace and that our restructured organization will create a system of field management which promotes creativity and entrepreneurial activity while maintaining control over our business, said the company at the time.
In connection with the reorganization, the company said it expected to incur costs of between $2 and $3 million, principally related to
severance payments and relocation benefits. Savings from the reorganization and synergies from the Petro acquisition may amount to approximately $16 million annually, it added.
With convenient locations on interstate exits, Westlake, Ohio-based TA offers diesel and gasoline fueling services, full-service and quick-service restaurants, heavy-truck maintenance services, 24-hour convenience stores, entertainment and other services.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.