June 14, 2024

Business travel recovery boosts Travelodge profits

A return of face-to-face business and networking at conferences has helped Travelodge achieve a record first half.

Revenue was up 22.4% to £478.7 million for the six months to June 30 2023 and adjusted EBITDA grew 48% to £104.5 million. Revenue per available room also climbed 20.7% to £54.92.

Jo Boydell, Travelodge Chief Executive, said the results reflect strong customer demand from the group’s “diverse mix of leisure and business guests”.

“Leisure guests used Travelodge as a base to enjoy friends and family get-togethers, and sports and music events including the Six Nations rugby, the Grand National, and Eurovision,” he said.

“This is alongside business guests returning to trade fairs, and looking for affordable, and quality accommodation for their day-to-day business needs.”

The financial update said the budget chain, which operates nearly 600 hotels in the UK and one in Madrid, attracts a diverse mix of business guests “from business executives to tradespeople”.

It is seeing record levels of sign-ups for its dedicated corporate programme, Travelodge Business Accounts, as “businesses seek good quality, affordable accommodation”.

“The company has also seen increased demand from a return to face-to-face business travel, with a growth in corporate exhibitions including the International Food and Drink Event and IFSEC, the security conference, at ExCel London,” it said.

Renovations continue, with 25% of room estate on track to be upgraded to new design by end of 2023.

“The new design includes features our customers have told us are important like bedside USB charging ports, blackout curtains, a new comfy armchair and a number of sustainable initiatives such as carpet made from recycled fishing nets and old plastic bottles, and low energy lighting,” said Boydell.

“As we look ahead, we see significant opportunities for further growth and have identified more than 300 sites for new Travelodge hotels across the UK, as well as opportunities to grow our operation in Spain.”

As part of the upgrade plans, Travelodge is trialling a new look Bar Cafe design called ‘Bar 85’ in some of its hotels.

Launched at London Royal Scot Kings Cross Travelodge, this new contemporary casual concept provides all-day dining, a dinner menu with meal deals from £12.7 and a statement bar offering a wide drinks selection including wines, spirits, cocktails and soft drinks.