Travelodge hails five-year transformation
By Andy Hoskins, published 22/03/2019
Budget hotel group Travelodge says its positive 2018 performance caps a ‘five-year transformation’ for the business.
Total revenue was up 8.8% in 2018, at £693.3million, while the group opened 17 new hotels, rolled out its first ‘premium economy’ SuperRooms and opened its first ‘budget chic’ Travelodge Plus hotel.
Occupancy over the course of the year also rose – by 2.5% to 78.5% – while the average room rate was static at £53.09.
In the five years since 2013 sales have increased by over £250million and EBITDA has more than trebled to £122million.
“Once again we outperformed our competitive segment and delivered another year of strong growth,” says Peter Gowers, Travelodge Chief Executive.
“These are uncertain times and we are not immune from the short-term challenges, but beyond, we remain confident that there are more opportunities ahead.”
Gowers continues: "These results highlight Travelodge's transformation over the last five years. Over that period, sales are up by more than £250m, we’ve outperformed our competitive segment for five years in a row, opened more than 60 new hotels and more than trebled our profitability.
“The long-term growth opportunities for the budget sector remain strong and we expect to open 100 new hotels over the next five years, creating approximately 3,000 jobs."
Travelodge currently has a network of 575 hotels across the UK, Ireland and Spain, and expects to open a further 20 this year.