Travelodge has passed the £1bn mark for revenue for the first time, while also posting a rise in EBITDA.
Revenue at the budget hotel chain rose by 13.7% year-on-year to just over £1bn in the year ending 31 December, while adjusted EBITDA grew by 14.6% to £243.9m.
The chain said its performance was driven by record-breaking trading days and weeks including Wimbledon, driving its highest-ever revenue in London; Eurovision, Travelodge’s biggest event of the year; and business events such as the Defence and Security Equipment International conference, driving Travelodge’s busiest week in H2 2023.
Travelodge said that positive trading patterns have continued into 2024, noting around 2% growth in its Q1 accommodation sales.
During the period, Travelodge opened four new hotels, including its first in Spain for more than a decade. It plans to open six hotels in the UK in 2024.
Travelodge said it has identified more than 300 target locations in the UK, with openings expected to return to normal levels of development as market conditions improve.
It says it will seek to launch between 15-20 hotels per year.
Chief executive Jo Boydell said: “While we remain mindful of the challenging macroeconomic backdrop, including ongoing cost inflation, we are continuing to invest in the long-term future of the business including the acceleration of our refit programme and exploring opportunities to open new hotels in both the UK and Spain.”
At the end of last month, a newly formed property holding group, Travelodge PropCo Group, closed the acquisition of 66 Travelodge-branded hotels for £210m from its largest landlord LXi REIT. The deal was supported by its owner GoldenTree Asset Management.
The hotels were bought on a freehold and long-leasehold basis, as the group looks to optimise its portfolio and diversify its freehold and leasehold split to enhance value.
Photo © Dinendra Haria/SOPA Images/Shutterstock
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